diff --git a/payments-api/passwords.py b/payments-api/passwords.py
--- a/payments-api/passwords.py
+++ b/payments-api/passwords.py
@@ -1,4 +1,6 @@
 """Lab password store for payments-api. Synthetic."""
 
+import hashlib
+
 def store_password(password):
-    return password
+    return hashlib.md5(password.encode()).hexdigest()