Can Quantum Computers Break Payment Security? Here’s What to Know
Quantum computing is becoming a reality now, and is not too far away from us. According to a report, the quantum computing market is expected to reach $90 billion per year by 2040, and significant changes are forecasted much earlier in the 2030s. At the same time, this depends on well-managed IT systems, as industries handling digital commerce face serious cybersecurity challenges. A big worry is whether quantum computers could break the encryption used in payment processing, and how organizations should get ready now.
The Problem: Quantum vs. Classical Encryption
To keep data safe, verify transactions, and guard personal details, modern payment systems rely on public-key cryptography techniques like RSA and Elliptic Curve Cryptography (ECC). Such cryptographic methods depend on math problems that are very hard for conventional computers to handle, such as prime factorization and the discrete logarithm problem.
But quantum computers are not like classical computers. If a computer using quantum mechanics uses Shor’s Algorithm, it could solve these problems much faster. An example is RSA-2048, which is widely used in payment gateways, but a quantum computer with the right resources could easily break it in just hours.
The Countdown to “Q-Day”
Current encryption could be broken using quantum computers in what is called Q-Day. Even though it’s not here now, people in the field think it’s likely within the next 15 years.
It comes from two directions:
- “Harvest Now, Decrypt Later” Threats: Hackers might have stolen encrypted payment data now so they can decrypt it later with quantum computers.
- Key Infrastructure Risk: The risk to financial services will be major if banks, fintech platforms, and payment processors cannot adapt before quantum computing is deployed.
What Needs to Change: Steps Toward Quantum Safety
Since industry and government bodies don’t want a future security problem, they are working on the issue now. Here’s how:
1. Post-Quantum Cryptography (PQC) Standards
Post-quantum encryption algorithms, including CRYSTALS-Kyber and CRYSTALS-Dilithium from the National Institute of Standards and Technology (NIST), have been prepared and are believed to be immune to quantum computing. Cryptography protocols will progressively take over from RSA and ECC, APIs, and communication protocols.
2. Hybrid Cryptographic Models
When switching, many banks are using both old and new encryption techniques at the same time. Because of this, systems will be less exposed to risks when transitioning and will support earlier software versions.
3. Quantum Key Distribution (QKD)
Quantum Key Distribution (QKD) relies on quantum mechanics to ensure encryption keys are not hackable. Even though it is only used on fiber-optic or satellite networks now, the opportunity for it in high-value payment networks is huge.
4. Enterprise-Wide Migration Planning
Banks and payment processors are being urged to inspect and update their cryptographic encryption in order to handle upgrades smoothly, from known-good standard cryptography to PQC protocols. Individuals are also putting money into quantum-safe HSMs (Hardware Security Modules) to secure real-time transactions.
5. Consumer Awareness and Regulation
While regulators like the European Central Bank and the FDIC are exploring quantum preparedness, businesses must explain to users any upcoming changes in security, mainly in terms of authentication, authorizing transactions, or using online wallets.
Conclusion
Quantum computing could seriously threaten how digital payments are secured. Even though Q-Day is not on the horizon right now, you have to start preparing. If quantum computers become commercially viable before systems protect themselves, breaches may make consumers very vulnerable.
That’s the area where we OmniPayments come into picture. Because our payment infrastructure is ahead of the times, we are already equipped to deal with new cryptographic standards, allowing businesses of any size to use strong, scalable, and quantum-proof solutions. OmniPayments supports all businesses by making payment operations more secure, today and in the future, with quantum computing.
Get in touch with us now to learn more about how we can strengthen your payment processing security and set new standards.
