Leveraging Blockchain for Secure Mobile Payment Systems: A Privacy Centric Approach

Abstract

Mobile payment systems have transformed financial transactions with unprecedented ease and accessibility. But the explosion in their numbers has been met with increasing security threats and issues of privacy. This paper puts forward a new blockchain-based paradigm for mobile payment systems that prioritizes privacy but retains high-security standards. This design leverages the essential capabilities of blockchain technology like decentralization, immutability, and cryptographic protection. It incorporates advanced privacy-protecting techniques such as zero-knowledge proofs and homomorphic encryption. The system design intended here is to mitigate common vulnerabilities present in centralized systems, reduce the risk of data breaches, and provide users with more control over their financial data. By comparative analysis and simulations, we show that our privacy-oriented blockchain solution strongly improves transaction security, minimizes fraud, and maintains user anonymity without sacrificing system performance or compliance with regulations. This work is a contribution to the ongoing work on developing more secure and privacy-aware financial technologies in a rapidly digitalizing economy.