HSBC and PayPal are among the founding members of a new working group focused on the adoption of quantum-safe cryptography in the payments industry.
Experts anticipate that, within the next decade, quantum computers may pose significant cybersecurity risks due to their potential to undermine current encryption standards like RSA, making previously secure data vulnerable. A recent white paper from DTCC warned that quantum computing could create substantial risks for financial institutions by exposing even the most secure systems to hacking.
The newly formed working group is dedicated to proactively addressing these challenges. It will investigate policies, regulations, and business processes related to quantum-safe cryptography, specifically aimed at securing payment systems. Established by the Emerging Payments Association Asia (EPAA), this group includes founding members such as HSBC, PayPal, IBM, and Australian Payments Plus.
Participants in the group will work to define requirements, identify dependencies, and develop use cases, ultimately creating a roadmap for implementing post-quantum networking to mitigate the anticipated risks of cryptographically relevant quantum computers. “Given the rapid advancements in quantum computing, data and systems that are currently secure may become exposed in just a few years. We are excited to collaborate with the EPAA to advance the industry’s transition to quantum-safe technologies,” stated Ray Harishankar, IBM Fellow – IBM Quantum Safe.
In a related effort, a coalition of European banks has joined the Quantum Safe Financial Forum (QSFF), which serves as a collaborative space for both European and U.S. financial firms, supported by Europol’s European Cybercrime Centre (EC3). This alliance aims to foster the development of secure and resilient technological systems within the financial sector, protecting against malicious attacks leveraging quantum computing.
Participating banks in the QSFF include BBVA, Banco Santander, CaixaBank, Barclays Bank, BNP Paribas, the Dutch Banking Association, the European Banking Federation, FS-ISAC, Intesa Sanpaolo, Mastercard, Moody’s, Novo Banco, and Rabobank. Escolástico Sánchez, leader of Quantum Discipline at BBVA, remarked, “While current quantum computers may not pose an immediate threat, they could soon become a concern. It is crucial to protect the confidentiality of our data and communications in preparation for that future. The QSFF allows banks to get ahead of potential threats by building robust security systems to safeguard both our data and that of our customers.”