Quantum computing differs from traditional computing in that it operates on qubits, not simply 0s or 1s. Using the quantum superposition feature, a qubit can represent the simultaneous superposition of 0 and 1. Therefore, quantum computing is helpful when performing large, complex calculations, such as risk analysis or algorithmic trading.
Whether it's Goldman Sachs seeking quantum computing to speed up the pricing of derivatives, or JPMorgan testing algorithms that predict option prices with quantum computing, head financial firms are exploring how to deploy the technology.
According to Business Insider, PayPal is trying to use the technology to help spot fraud, as well as measure the credibility of its customers. The company partnered with IBM in October 2020 to study how quantum computing can be used to improve fraud detection, credit risk operations, and the overall security posture.
Hubert Le Van Gong, head of research at PayPal's emerging technologies, said early studies have shown that quantum computing can do a better job than traditional computing at cleaning up large data sets, spotting potential fraud in data, or identifying personal credit. Applying quantum computing to existing computer learning capabilities could mean that PayPal will improve its ability to detect fraud and save costs during the modeling process.
Hubert Le Van Gong
But it's a long-term collaboration — many of the advantages are theoretical and yet to be proven.
Jay Gambetta, vice president of IBM Quantum, said: "I can't say this technology will be effective in detecting fraud anytime soon. It is still research-based. Even with a "fairly tight" timeline for quantum hardware and software development, the technology will not be realized until at least 2023.
"It's not a question of whether it will happen, it's a question of when." Le Van Gong said. "Companies that wait for the time to come will miss out."
PayPal detects fraud through large, ever-changing data sets and makes judgments around credit value. However, the dataset is huge, with millions of samples and up to 10,000 different attributes such as IP address, device type, and location.
To reduce the number of attributes and the cost of modeling calculations, PayPal currently uses a method called "feature selection" – using computer learning capabilities to determine which attributes are most helpful in flagging fraud.
Le Van Gong says that even with "feature selection," computing with traditional computers is still an extremely complex, expensive, and time-consuming task. In terms of the number of data features and the size of the data set, quantum computers are expected to surpass traditional computers. In addition to scale, quantum computers can also help PayPal improve predictions about important features at a lower cost than traditional computers.
PayPal has been working on quantum computing for the past few years, but how the technology works and how it integrates with traditional computers is still in its infancy. The program is led by PayPal's Emerging Technologies Research Team, which was formed in 2021 to explore the use of advanced security technologies such as encryption and distributed ledgers.
On January 10, 2022, local time in South Korea, IBM announced that LG Electronics has joined the IBM Quantum Network Program to advance the industry application of quantum computing.
LG Electronics' goal is to explore the application of quantum computing in the industrial field to support big data processing, such as artificial intelligence, internet cars, digital transformation, Internet of Things, robotics and other applications. IBM will provide LG Electronics with quantum computing systems, expertise and an open source quantum information software development kit, Qiskit.
"[The company] will build on an open innovation strategy to leverage IBM quantum computers to improve quantum computing capabilities." Our goal is to use quantum computing to provide customers with higher value in the future business. Byoung-Hoon Kim, chief technology officer of LG Electronics, said.
Gambetta said: "It is a great welcome for LG Electronics to join the Korean quantum computing ecosystem, which is an exciting time for the region. Through the collaboration between IBM and LG Electronics, LG Electronics will explore new issues related to emerging technologies and will help strengthen South Korea's quantum domain capabilities. ”
In November 2021, IBM unveiled a new 127-qubit "Eagle" quantum computing processor, an important step in IBM's quantum advantage initiative.