Global payment technology company Mastercard has made the cardholder’s signatures optional for both on the card and on receipts.
Mastercard issuers across the world will not have to include a signature panel on the back of Mastercard products. This decision will turn into a reality from April 2019.
Last year, Mastercard gave merchants the option to collect cardholder signatures for in-store purchases in the US and Canada. Now, it has extended the same option to merchants around the globe.
Mastercard US merchants and acceptance executive vice president Linda Kirkpatrick said: “With modern, advanced forms of authentication now available, removing the requirement for signature capture at the point of sale and now signature panels on Mastercard cards is an important step in support of our digital evolution.
“Issuers, merchants and cardholders will benefit from this change as faster, safer options improve satisfaction and increase sales.”
The move is aimed at offering faster and more streamlined point of sale experience to customers. Furthermore this was driven by the changing payment landscape where customers prefers tap to pay using their contactless card payments which is fast, safe and do not need a signature.
Mastercard took this decision, after report in the US revealed that just 40% users had signed the back of their cards, and one-third of those who did not put their signature said they do not see the point in doing so.
The report also highlighted that over half of the survey participants believed they were just as secure without signing the back of their cards, and two-thirds said that biometrics should replace signatures, passwords and PIN codes for card payments.
Commenting on Mastercard’s announcement, Walmart senior vice president and assistant treasurer Mike Cook said: “Signature has been an obsolete form of authentication for quite some time, and removing the signature panel from the cards will reinforce the need for all stakeholders to leverage truly effective authentication technologies to address fraud.”