Abstract

The rapid transition from cash-based to digital payment systems underscores the critical need for robust security frameworks to safeguard sensitive financial data and maintain public trust. This paper explores the foundational principles of payment system security that includes data integrity, confidentiality, and availability and examines key technologies and methodologies designed to mitigate risks, including encryption, tokenization, and authentication mechanisms. Symmetric and asymmetric encryption techniques are analyzed for their roles in securing transactional data, while tokenization is highlighted as a method to reduce exposure of sensitive information. Secure communication protocols such as TLS and multi-factor authentication (MFA), including biometric verification, are discussed as essential layers of defense against evolving cyber threats. The challenges of securing mobile payment systems and compliance with regulations like PCI DSS are also addressed. The study concludes that a multi-layered security approach, coupled with adherence to evolving standards and user education, is vital to sustaining trust in digital payment ecosystems.