How Mastercard is preparing for a quantum future
For Mastercard, a global leader in payments and financial technology, quantum computing is one of many emerging technologies the company is exploring for its potential to transform the financial services sector.
The timeline to Q-Day may feel distant, but preparations need to start now
Steve Flinter, distinguished engineer (SVP) of artificial intelligence (AI) at Mastercard, recently shared his insights into how the company is exploring quantum computing, its implications for cryptography, and what businesses can do to prepare for the quantum era.
For Mastercard, the approach is both defensive and proactive. Defensive includes preparations for Q-Day.
As I’ve covered in a previous article, Q-Day refers to the moment when quantum computers become powerful enough to break current encryption standards, such as RSA, which underpin secure financial transactions.
Steve believes Q-Day is at least a decade away, but for him, it’s not a matter of if, but when.
However, he says there are caveats. Even if a quantum computer could break the encryption standards that exist today, it would take hours to break a single encryption key. This makes such attacks unlikely for cybercriminals in the near term, though they may appeal to nation-states targeting high-value secrets.
For businesses like Mastercard, which securely manages a network that processes 143 billion transactions a year with constant and diligent work, understanding and preparing for the potential impact of Q-Day is crucial. Steve Flinter identifies “crypto agility” as a cornerstone of any quantum readiness strategy.
Crypto agility refers to the ability to adapt cryptographic systems quickly and seamlessly to counter emerging threats or adopt new standards without overhauling entire infrastructures. Since cryptography is deeply embedded across an organisation’s IT stack—from mobile devices and network layers to databases and applications—wholesale replacements or upgrades are neither practical nor cost-effective.
To address this challenge, Steve advocates for developing a “crypto inventory”—a comprehensive map detailing where cryptography is used throughout the organisation. This inventory enables businesses to identify priority areas for updates and adopt quantum-resistant algorithms in a phased, efficient manner. As Flinter explains, crypto agility ensures businesses can seamlessly replace compromised algorithms with quantum-safe alternatives, maintaining operational continuity and security.
Flinter also emphasises that preparing for quantum computing doesn’t necessarily mean waiting for the technology to mature. Standards bodies like the US’s National Institute of Standards and Technology (NIST) have been actively developing post-quantum cryptographic tools and standards designed to resist quantum attacks while running on classical systems. After nearly a decade of research and evaluation, NIST has already standardised three such algorithms, with a fourth in progress. These algorithms are being adopted by major players like Cloudflare, Apple, and Signal, ensuring that key components of the digital ecosystem remain secure.
Monitoring these developments and proactively implementing post-quantum solutions are critical steps for organisations. Flinter likens this approach to the Y2K readiness efforts, where companies used the challenge as an opportunity to audit and upgrade systems comprehensively. By taking a similar proactive stance, businesses can safeguard against future quantum threats and position themselves to thrive in a rapidly evolving technological landscape.
Mastercard is also taking a broader, much more proactive approach. The company is exploring how quantum computing can enhance its operations and create new opportunities, particularly in the areas of machine learning and customer engagement.
Optimising machine learning models for fraud detection
Fraud detection is a cornerstone of Mastercard’s operations, with the company processing billions of transactions annually. Each transaction generates a wealth of data, including cardholder details, merchant information, and contextual factors like location and timing. To identify potentially fraudulent transactions, Mastercard uses machine learning models that analyse these data points in real time.
However, the sheer volume of data presents a challenge, and this is where quantum computing comes in. Quantum computers excel at solving optimisation problems, and Mastercard is exploring how they can help select the most relevant features for fraud models. By using quantum computing to optimise feature selection, Mastercard aims to enhance accuracy, maintain real-time performance, and scale efficiently as data volumes grow.
Personalising loyalty and rewards programmes
Mastercard’s loyalty and rewards programmes are another area where quantum computing has the potential to drive innovation. These programmes are essential for strengthening relationships with customers and merchants, but their effectiveness hinges on delivering the right offers to the right people at the right time. Quantum computing’s ability to process complex datasets and identify patterns makes it an ideal tool for this challenge, enabling Mastercard to provide even more personalised rewards and match merchant promotions to the right audiences.
Beyond immediate applications, Mastercard is also examining potential uses of quantum computing in areas like risk management, supply chain optimisation, and financial modelling.
These initiatives reflect the company’s forward-thinking approach to quantum computing as an opportunity area.
Final thoughts
Preparing for the quantum era requires strategic foresight and action. Here are three steps businesses can take, inspired by Mastercard’s approach:
- Build crypto agility: Develop a detailed inventory of cryptographic systems and prepare to adopt post-quantum algorithms as standards evolve.
- Monitor quantum progress: Stay informed about advancements in quantum computing by tracking the roadmaps and benchmarks of leading companies like IBM and Google.
- Experiment with quantum applications: Explore areas where quantum computing can add value today, such as optimisation, fraud detection, or data analytics, even if quantum capabilities are still maturing.
As Flinter emphasises, the timeline to Q-Day may feel distant, but the preparations need to start now. For financial institutions, the cost of inaction could be catastrophic, while proactive measures offer opportunities to innovate and secure competitive advantages.
By embracing crypto agility, staying informed, and experimenting with current quantum capabilities, businesses can ensure they’re ready for the quantum future, just as Mastercard is.
About the author
Dave Wallace is a user experience and marketing professional who has spent the last 30 years helping financial services companies design, launch and evolve digital customer experiences.
He is a passionate customer advocate and champion and a successful entrepreneur. All opinions are his own – feel free to debate and comment below!
Follow him on X at @davejvwallace and connect with him on LinkedIn.
