HSBC, PayPal Join Quantum-Safe Cryptography for Payments Group

HSBC, PayPal, IBM and Australian Payments Plus have become founder members of a new working group that aims to protect payments from the threat quantum computers pose to current encryption methods.

Emerging Payments Association Asia (EPAA) leads the group, which targets quantum-safe cryptography for the payments industry. Other major financial services organizations have also joined the initiative.

Near-future cryptographically relevant quantum computers could break the encryption currently used to secure payment transactions and other sensitive data during transmission. This includes RSA public-key encryption, one of the most widely used cryptosystems.

A recent Depository Trust and Clearing Corporation (DTCC) white paper warned of the threat to financial transactions and advised organizations to start preparing for the threat now.

In response, the new group is pre-emptively exploring policy, regulation and business procedures for quantum-safe transactions.

The members intend to define requirements, identify dependencies and create a roadmap for implementing post-quantum networks to protect the payment rails that allow money to transfer between payer and payee.

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

Related:HSBC Protects Trading Transactions from Cyber Threats with Quantum