Evaluating Privacy Technologies in Digital Payments: A Balanced Framework

Privacy enhancement technologies are significant in the development of digital payment systems. At present, multiple innovative digital payment solutions have been introduced and may be implemented globally soon. As cyber threats continue to increase in complexity, security is a crucial factor to consider before adopting any technology. In addition to prioritizing security in the development of digital payment systems, it is essential to address user privacy concerns. Modern digital payment solutions offer numerous advantages over traditional systems; however, they also introduce new considerations that must be accounted for during implementation. These considerations go beyond legislative requirements and encompass new payment methods, including transactions made through mobile devices regardless of internet connectivity. A range of regulations and guidelines exist to ensure user privacy in financial transactions, with the General Data Protection Regulation (GDPR) being particularly notable, while technical reports have thoroughly examined the differences between various privacy-enhancing technologies. Additionally, it is important to note that all legal payment systems are required to maintain information for audit purposes. This paper introduces a comprehensive framework that integrates all critical considerations for selecting appropriate privacy enhancement technologies within digital payment systems, while it utilizes a detailed scoring system designed for convenience and adaptability, allowing it to be employed for purposes such as auditing. Thus, the proposed scoring framework integrates security, GDPR compliance, audit, privacy-preserving technical measures, and operational constraints to assess privacy technologies for digital payments.