The payments sector is set to benefit from a new initiative, aiming to explore and implement quantum-safe cryptography across the payments industry. Leading this initiative is the Emerging Payments Association Asia (EPAA), which has brought together founding members like financial giants HSBC and PayPal, and also tech players like IBM and Australian Payments Plus.

Quantum computing, with its immense processing power, poses a massive potential threat to conventional encryption methods such as RSA, rendering data vulnerable to breaches. 

Experts warn that within the next decade, cryptographically relevant quantum computers could compromise even the most fortified systems, posing significant risks to financial institutions, as highlighted in a DTCC white paper.

The coalition will proactively address challenges posed by quantum computing, and look into areas like policy frameworks, regulatory considerations, and operational protocols tailored for quantum-safe cryptography in payment networks. 

“Strategy-focused initiatives define a problem statement, align on an approach, and share experience with proof of concepts and trials. This guidance not only ensures that sector-specific regulations and policies are informed by real community needs and experiences, but it also equips organisations to translate policies and standards into practice,” read an IBM blog about the new initiative. 

Recommended reading

• UK Empowers Law Enforcement to Seize Cryptocurrency Assets
• HSBC’s Quantum Protection Trial for FX Trading a Success
• Edinburgh Napier to Help Make the UK a Leader in Cryptography

The working group is set to define requirements, identify dependencies, map out use cases, and chart a roadmap for the implementation of post-quantum networking. By staying ahead of the curve, the coalition aims to mitigate the anticipated risks associated with future quantum computers, ensuring the resilience and security of payment systems in the face of evolving technological landscapes.

This collaborative effort underscores a proactive approach by industry leaders to safeguard sensitive financial data and bolster cybersecurity measures in an increasingly digitised world. 

“Given the accelerated advancements of quantum computing, data and systems secured with today’s encryption could become insecure in a matter of years. We are pleased to work with the EPAA to help advance the industry’s move to adopt quantum-safe technology,” said Ray Harishankar, IBM fellow – IBM Quantum Safe.