Financial institutions are exploring the use of quantum tech to optimize operations within payments and security. 

Quantum technology can make payments safer through cryptography and by providing secure communications, Lily Varon, principal analyst at think tank Forrester, told Bank Automation News. 

“When we think about quantum computing, we think about payments and quantum security in particular,” Varon said. Quantum computing “in payments enables two parties to generate and share a secret key to enable encrypted communication.” 

Payments and transaction data hold sensitive information and are vulnerable to hacking attempts, she said. Encryption of data can help financial institutions prepare for high-tech fraud attempts, she said. 

The $220 billion Citizens Bank, for one, is developing quantum technology with National Institute of Standards and Technology, IBM and Microsoft for cybersecurity and “defensive cryptography” against potential hackers, Michael Ruttledge, chief information officer at Citizens Bank, told BAN. 

Citizens is also tapping quantum for “fraud, risk analytics, credit scoring,” Ruttledge said, noting that “the speed of quantum really gives you the ability to digest and analyze just vast quantities of data in real time.” 

Wide use of quantum computing is expected to be years away due to its “complexity, expense and talent development,” Varon said. 

“Quantum security is the way to protect our payment data and our payment protocols in the long term,” she said.  

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