# P2PE Introduction (/global/en/docs/Terminal/P2PE-Security-Empowerment-SDK/P2PE-Application-PaymentLink/P2PE-Introduction)

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## Introduction

**P2PE (Point-to-Point Encryption)** is a security standard designed to protect sensitive data in payment transactions. It encrypts cardholder information at the point of capture and ensures this data remains encrypted throughout its transmission until it reaches a secure decryption environment, such as a payment processing system. This prevents sensitive data from being exposed or intercepted maliciously.

### Key Features

|                           |                                                                                                                                       |
| :------------------------ | :------------------------------------------------------------------------------------------------------------------------------------ |
| **Real-time Encryption**  | Data collected from card readers or other input devices is immediately encrypted.                                                     |
| **End-to-end Protection** | Data remains encrypted in ciphertext form from the terminal to the payment processing system, minimizing exposure risks.              |
| **Compliance**            | Meets security standards set by the PCI SSC (Payment Card Industry Security Standards Council), reducing merchant compliance burdens. |

## Key Element of P2PE

| Role                 | Role Definition        | Relationship                                             |   |
| -------------------- | ---------------------- | -------------------------------------------------------- | - |
| **P2PE Solution**    | Full certified system  | Composed of Components and Applications                  |   |
| **P2PE Component**   | Supporting module      | Used by the Solution to provide key capabilities         |   |
| **P2PE Application** | Software on POI device | Acts as the front-end entry point in the encryption flow |   |

A complete P2PE solution is typically built by a solution provider integrating validated components and applications into a secure, end-to-end payment chain.

> **Simplified Relationship**
>
> P2PE Solution = P2PE Component (e.g., Key Management) + P2PE Application (e.g., Payment App) + Secure Decryption Environment

### P2PE Solution

A **P2PE Solution** is a complete, PCI SSC-validated system provided by a **P2PE Solution Provider**, integrating hardware, software, key management, encryption logic, and operational processes.

- **Purpose**: Ensures end-to-end protection from encryption at the terminal to secure decryption.

### P2PE Component

A **P2PE Component** refers to a specific module or service that supports a P2PE Solution. Provided by **P2PE Component Providers**, these components are not required to meet all P2PE requirements but must contribute securely to the overall solution.

Common components include:

- Key lifecycle management systems (for PIN and data encryption)

- Device security management platforms

- Physical facility security and access control

- Documentation and policy frameworks

### P2PE Application

A **P2PE Application** is any payment software or file loaded onto a PCI-approved POI device that accesses account data and participates in the P2PE process.

- Must comply with P2PE Application Security Requirements.

- Can be independently evaluated and listed on the \**PCI SSC P2PE Application Providers List.*\*

## Benefits of P2PE

### Enhanced Security

- **Data Protection**: Sensitive data remains encrypted throughout the transaction chain, significantly reducing the risk of data breaches.

- **Reduced Attack Surface**: By keeping data encrypted, the chances of hacking or insider abuse are minimized.

### Simplified Compliance Process

- **Simplified PCI DSS Compliance**: Merchants using P2PE solutions can greatly simplify their PCI DSS (Payment Card Industry Data Security Standard) compliance requirements, sometimes even exempting parts of the assessment.

- **Reduced Audit Scope**: For applications adopting P2PE, especially those classified as Non-Payment Applications, audit scope is significantly reduced, saving time and costs.

### Increased Customer Trust

- **Brand Reputation**: Demonstrating high levels of data protection enhances consumer trust in your brand.

- **Risk Management**: Advanced encryption technology effectively manages and reduces potential data breach risks.

## P2PE Implementation Diagram

![](https://docs.newlandnpt.us/assets/_shared/82675dc78043/p2pe_implementation_glance.png)

## P2PE in NewlandNPT

### PCI PTS Devices

All **NewlandNPT POS devices** are **PTS (Payment Terminal Security) certified devices**, meaning each device has undergone rigorous testing and evaluation to ensure it meets the highest security standards in the payment industry. Each device comes with its corresponding **PTS certificate**.

### P2PE Component

| Component                               | Component Type                         |   |
| --------------------------------------- | -------------------------------------- | - |
| NewlandNPT Certificate Authority (CA)   | Certification/Registration Authorities |   |
| NewlandNPT Key Injection Facility (KIF) | Key Injection Facility                 |   |
| NewlandNPT Key Management Services      | Key Management                         |   |

### P2PE Application

| Application | Application Version |   |
| ----------- | ------------------- | - |
| PaymentLink | V1.0.XX             |   |