Future-proofing business: Paysafe’s CISO on quantum computing’s role in financial innovation

Quantum computing is no longer just the stuff of science fiction; it's rapidly becoming one of the most talked-about technological advancements. With the potential to transform sectors that rely on complex problem-solving, such as finance, logistics, and cybersecurity, quantum computing is generating a lot of buzz — and raising many questions.

To help unpack this emerging technology and what it means for businesses, we sat down with Alan Osborne, Chief Information Security Officer at Paysafe. With over 25 years of experience in cybersecurity and IT risk strategy, he’s accustomed to establishing the benefits and pitfalls of new technologies — and determining the implications for businesses.

In this interview, we covered the fundamentals of quantum computing and how it could reshape financial services in the future.

Q: Quantum computing is sparking widespread interest in the tech sector. Can you explain why this technology has so much potential?

Alan Osborne: Quantum computing has the potential to revolutionize how we process and interpret information.

Unlike classical computers, which use binary bits (zeros and ones) to store and process data, quantum computers use qubits. Qubits can exist in multiple states simultaneously, enabling them to encode more data at once. As a result, quantum systems can solve complex problems exponentially faster than classical ones.

Industries that depend on streamlined operations and large-scale data analysis stand to benefit significantly. For example:

•    Finance could benefit from faster fraud detection and risk modeling. 
•    Pharmaceuticals could accelerate drug discovery to unprecedented speeds.
•    Logistics firms could quickly optimize global supply chains.

Quantum may be in its early stages, but many industries are already exploring its use cases, and new applications are always emerging.

Q: How long will it be before quantum computing assists with day-to-day business processes?

Alan Osborne: Most experts predict that we’re about 5 to 10 years away from seeing quantum integrated into business processes, but this timeline could accelerate if there is an unexpected breakthrough. While quantum computing is advancing rapidly, mainstream business adoption is still years away.

Q: The financial services industry is expected to increase investment in quantum computing from just $80 million in 2022 to $19 billion in 2032, representing a 10-year compound annual growth rate of 72%. In what ways could quantum computing transform the finance industry?

Alan Osborne: Quantum computing is set to revolutionize finance in multiple ways, with new opportunities surfacing all the time. Businesses must invest today to prepare for a quantum-powered future.

Here are some of the areas the technology will impact:

Fraud detection: At Paysafe, we’re already investigating how quantum algorithms might detect fraud patterns faster and more accurately. This research could allow us to approve more revenue-generating transactions while making more precise decisions on which ones to decline.

Cryptography & security: Quantum-resistant encryption will help protect sensitive financial data. 

Due to the scale and complexity of migrating away from encryption algorithms to quantum-resistant alternatives, companies must act now. Waiting until “Q-day” — the point when quantum computers can break security protocols currently in use — would leave businesses incredibly vulnerable.

Portfolio optimization: Quantum computing algorithms may be able to analyze vast amounts of market data to optimize investment strategies.

Risk management: Financial institutions could model risk exposure across global markets in real-time, leading to better decision-making in areas like insurance.

The speed and efficiency gains from quantum computing give financial services organizations a chance to gain a major competitive advantage.

Q: What are the biggest challenges facing financial services businesses seeking to implement quantum computing capabilities?

Alan Osborne: There are several obstacles financial services businesses will need to overcome to adopt quantum computing technologies successfully:

Technology maturity: While progress is accelerating, quantum computers are still in early development and prone to high error rates.

Talent shortage: There’s a limited pool of experts with deep knowledge in quantum computing. Companies like Paysafe are bridging this skills gap by partnering with Quantum-as-a-Service providers that offer specialist support.

Integration with existing systems: Financial institutions relying on classical computing systems will need to rebuild them to integrate with quantum computers. This will require redesigning existing systems and developing strong integration architectures.

Q: Do you foresee regulatory bodies playing a significant role in how quantum computing is used in financial services?

Alan Osborne: Regulators will undoubtedly play a role in shaping the future of quantum computing in finance. Although, the extent of their influence will depend on the broader political landscape.

In the U.S., the National Institute of Standards and Technology (NIST) is already leading efforts to standardize quantum-resistant encryption. Meanwhile, in Europe, the European Central Bank (ECB) and UK regulators have started exploring quantum’s potential impact on the industry.

Security concerns are accelerating regulatory interest. In the U.S., the government’s 2022 National Security Memorandum 10 called for federal agencies to begin preparing for post-quantum cryptography algorithms. The memo sets a clear precedent for how governments — and eventually private enterprises — should approach quantum challenges.