Future-Proofing Payments: Why Post-Quantum Cryptography Matters Today

In the world of fintech and digital payments, security is not a static destination—it is a continuous evolution. For years, our industry has relied on encryption standards like RSA and Elliptic Curve Cryptography (ECC) to secure everything from online transactions and API communications to digital signatures. These technologies are the invisible bedrock of trust in the global economy.

However, a new frontier in computing is emerging that challenges these foundations: Quantum Computing. While the full realization of quantum power is still on the horizon, the time for the payments industry to prepare is now. This transition is known as Post-Quantum Cryptography (PQC).

The Looming Quantum Shift: Why Now?

It may seem premature to discuss technologies that aren’t yet in mainstream production, but quantum computing is no longer just a theoretical research topic. Experts believe that quantum computers powerful enough to break today’s encryption—often referred to as “Q-Day”—could become a reality within the next decade, with some projections placing this milestone as early as 2027–2030.

The “Harvest Now, Decrypt Later” Threat

The most pressing reason for the payments industry to act today is a strategy known as “Harvest Now, Decrypt Later” (HNDL). Malicious actors are already capturing and storing encrypted sensitive data today with the intent of decrypting it years later when quantum technology becomes mature.

For the financial and payments industry, where transaction data, identity records, and long-term contracts must remain confidential and trustworthy for many years. This poses a significant long-term risk. As noted by Mastercard’s research into quantum-safe technology, the longevity of financial data means that if your encryption isn’t quantum-resistant today, your data could be exposed tomorrow. Because of this long data lifespan, we cannot wait for the threat to arrive before we build the defense.

Regulatory Pressure and the Compliance Horizon

It isn’t just a technological race; it’s a regulatory one. The Digital Operational Resilience Act (DORA), which became effective in January 2025, has already turned resilience into a “regulatory must-have” for financial entities in Europe. According to Worldline’s 2026 payments trends, DORA sets a clear expectation that financial institutions must anticipate and withstand future disruptions, including quantum threats. Furthermore, the National Institute of Standards and Technology (NIST) has officially finalized the first set of PQC standards, signaling to the industry that the “wait and see” period is over.

What is Post-Quantum Cryptography (PQC)?

PQC represents a new generation of encryption methods designed to stay secure even against the immense processing power of future quantum computers. Unlike current encryption, which relies on mathematical problems like integer factorization (which quantum computers excel at solving), PQC uses “quantum-resistant” math, such as lattice-based cryptography.

The New Gold Standards

On August 13, 2024, NIST released the first three finalized Federal Information Processing Standards (FIPS) for PQC. These include:

• ML-KEM (FIPS 203): The primary standard for general encryption and key exchange.

• ML-DSA (FIPS 204): The primary standard for protecting digital signatures.

• SLH-DSA (FIPS 205): A backup signature standard based on a different mathematical approach to ensure redundancy.

In March 2025, NIST also selected HQC (Hamming Quasi-Cyclic) as a fifth algorithm to serve as a backup for general encryption, providing “algorithmic diversity” to the ecosystem. This variety is crucial; as Sectigo’s analysis of PQC winners highlights, using different mathematical foundations ensures that if one method is eventually found vulnerable, the entire financial system doesn’t collapse.

The Hybrid Approach

PQC does not mean replacing all current systems overnight. Instead, the industry is moving toward a Hybrid Model. This involves layering a post-quantum algorithm on top of a classical one (like ECC + ML-KEM). This “belt and braces” approach ensures that systems remain secure against current threats while gaining protection against future quantum ones without breaking backward compatibility with legacy systems.

A Strategic Roadmap: How Organizations Transition

Preparing for PQC is a marathon, not a sprint. At Novalnet, we believe this transition requires a structured, three-phase approach that ensures stability while enhancing security.

1. Awareness and “Crypto-Inventory”

The first step for any merchant or financial institution is building a Cryptographic Inventory. You cannot protect what you don’t know you have. Organizations must map out where encryption is used across their stack—from TLS and APIs to certificates and key management. BCG suggests that only about 10% of applications (like online banking and customer portals) are truly critical and require immediate upgrades, allowing teams to prioritize their resources effectively.

2. Planning for “Crypto-Agility”

Modern payment infrastructure must be “crypto-agile.” This means designing systems so that cryptographic algorithms can be swapped or updated without requiring a total overhaul of the software architecture. As highlighted in Mastercard’s 2025 white paper, agility is the cornerstone of quantum readiness. It allows organizations to adopt new NIST standards as they mature and respond rapidly if a specific algorithm is compromised.

3. Gradual, Risk-Based Adoption

The final stage is the controlled rollout of PQC components. This is done in a risk-based manner, often starting with internal communications or high-value data transfers. The Banque de France and MAS have already successfully experimented with PQC in email and payment VPN tunnels, proving that these advanced methods can be integrated with minimal overhead and zero disruption to system performance.

The Bottom Line: Protecting the Future of Payments

As a payment service provider, trust and long-term data protection are the pillars of our business. For Novalnet and our merchants, preparing for the quantum era allows us to:

1. Stay Ahead of Regulation: Proactively meeting future mandates like DORA and PSD3 before they become bottlenecks.

2. Minimize Long-Term Risk: Effectively neutralizing the “Harvest Now, Decrypt Later” threat.

3. Maintain Competitive Advantage: In an era where identity theft is becoming AI-powered and more sophisticated, being “quantum-safe” is a powerful differentiator for high-trust brands.

The goal for today is shared understanding. By looking ahead, we ensure that as the world of computing changes, the security of your payments remains absolute.

Do you have questions about your quantum readiness?

Don’t navigate this cryptographic shift in isolation. Our payment and security experts are available to discuss your specific technical requirements—from mapping your current encryption inventory to exploring “hybrid” PQC models—to ensure your business remains secure and compliant well into the quantum era.

Contact our experts here to discuss your quantum transition strategy

Alexander Burba

Alexander Burba is a Performance Marketing Specialist at Novalnet AG in Munich, where he leads digital acquisition and brand initiatives. With over 7 years of experience in B2B SaaS, FinTech, and IT marketing, Alexander has supported international teams in Germany and Ukraine, serving clients across the EU, US, and global markets. He combines data-driven strategy with cross-functional collaboration to deliver measurable growth for Novalnet and its partners.