How to Choose the Right Payment HSM to Secure Your Payment Transactions Data – Part 1

In today’s digital-first world, where data holds the same value as oil, organizations and individuals have a constitutional duty to prioritize cybersecurity.

Malicious threat actors are abandoning conventional practices and adopting sophisticated mechanisms to target businesses of all sizes, making the protection of sensitive data more crucial than ever.

The Banking, Financial Services, and Insurance (BFSI) industry has consistently been one of the most heavily targeted sectors, particularly in Asia.

According to data from the Indian government, Indian banks experienced a staggering 248 successful data breaches between June 2018 and March 2022, resulting in a total of 674,021 cyber incidents as of June 2022.

As the digitization of financial transactions accelerates at an unprecedented pace, with the adoption of new-age mechanisms like the Unified Payment Interface (UPI) and the Central Bank Digital Currency (CBDC), the role of Payment Hardware Security Modules (HSMs) has become more critical than ever.

However, not all Payment HSMs are created equal. In this three-part series, we will explore nine key features that organizations should consider when selecting the right Payment HSM.

Must-Have Features in an Ideal Payment HSM

Dual functionality

In the rapidly evolving landscape of financial transactions, an HSM must not only keep pace but also drive optimal efficiency and cost savings.

A critical feature that stands out is dual functionality, combining general-purpose data protection and payment processing in the same device. This eliminates the need to purchase and manage two different HSMs, resulting in significant cost savings and simplified operations.

With physical rack space often at a premium in data centers, HSMs with dual functionality allow for packing in more capabilities in less space, leading to tangible cost savings.

Performance

When it comes to the high-stakes world of financial transactions, speed and reliability become the cornerstone of operational efficiency.

With the number of financial transactions galloping at an unprecedented rate due to rapid digital transformation, an ideal Payment HSM should offer much more than the standard up to 10,000 transactions per second (TPS) speed offered by traditional HSMs.

While processing speeds in excess of 10,000 TPS may sound good-to-have, they become a must-have feature to ensure seamless business continuity, even during peak times.

Authentication mechanisms

Security is not just about locking a door; it also involves safely storing and distributing keys. Therefore, a Payment HSM should provide multiple authentication mechanisms to address the evolving threat landscape.

Many Payments HSMs in the market today only offer smartcard-based authentication with single user authorization. This not only hampers operational efficiency but also expands the threat landscape.

To ensure comprehensive data security, the ideal Payment HSM should offer multiple authentication mechanisms and seamless support for multiple user roles, enhancing versatility in access controls.

Futurex’s Payment HSMs: A Cut Above the Rest

Over the last four decades, Futurex has remained the trusted industry leader in hardened data encryption security solutions.

Offering a wide range of FIPS 140-2 Level 3 and PCI-validated Payment HSMs, Futurex’s Excrypt Plus and Excrypt SSP Enterprise v.2 Payment HSMs help organizations securely protect their payment transactions.

Providing seamless dual functionality of both general-purpose data protection and payment processing within the same HSM, Futurex’s Payment HSMs offer a broad range of capabilities like payment transaction processing, key management, online and mobile PIN issuance, P2PE and tokenization, and EMV issuance and validation.

With blazing-fast transaction processing speeds of up to 50,000 TPS, these modular HSMs can be easily hosted in a 1U rack space that can help organizations reduce their data center spends.

Additionally, Futurex’s Payment HSMs offer seamless support for up to 1000 user roles and unparalleled versatility through multiple authentication mechanisms including smartcards, passwords, and FIDO tokens.

In the subsequent parts of this three-part series, let’s explore 6 more features that you should look for when choosing the right Payment HSM for your organization.

Stay tuned!

FAQ

What are the cybersecurity challenges faced by the BFSI sector in Asia, especially in India, and how are they addressing them?

The BFSI sector in Asia, particularly in India, grapples with substantial cybersecurity threats, as evidenced by the alarming number of data breaches and cyber incidents reported by Indian banks. Understanding the specific nature of these threats and how organizations are adapting to mitigate risks is crucial for ensuring the security of sensitive financial data and transactions.

How does dual functionality in Payment HSMs benefit organizations in terms of cost savings and operational efficiency?

Dual functionality in Payment HSMs provides cost savings and operational efficiency by combining general-purpose data protection and payment processing in a single device. This eliminates the need for managing separate HSMs and optimizes rack space in data centers.

What sets Futurex’s Payment HSMs apart, and how do they meet the evolving security needs of financial transactions?

Futurex’s Payment HSMs stand out with their extensive capabilities, including fast transaction processing speeds, versatile authentication mechanisms, and support for multiple user roles. These features address the evolving security needs of financial transactions and offer organizations robust protection for their payment transactions.