E2EE and P2PE Solutions

 In Point-to-Point Encryption

E2EE vs P2PE: What You Need To Know

In the IT community, it is common to address encryption with the term E2EE. It is used as a generic reference to any method of securing transmissions from one endpoint to another. End-to-end encryption versus point-to-point encryption, or E2EE vs. P2PE, can confuse merchants due to the frequent misuse of the terms. After reading this article, we hope you have a better idea of the differences.


End-to-end encryption is the umbrella for transaction encryption from the point of sale to the endpoint, meaning that P2PE is a type of E2EE solution. The technology used after the initial payment is what truly differentiates the two. In E2EE, the merchant has the flexibility to choose the data that is encrypted. Since headers are not encrypted, the file size is smaller, encryption time is shorter. and it uses fewer resources than P2PE. One of the most commonly used E2EE encryption solutions is DUKPT, short for derived unique key per transaction.


Point-to-point encryption differs from E2EE in that it prevents the merchant from managing the encryption keys, as it is implemented by a third-party. Another difference is that instead of keeping the data encrypted until the final destination, P2PE decrypts the data at the payment gateway to transmit it through an encrypted tunnel. While there are arguments about whether this is more or less secure, the reality for the merchant is that their responsibility does not extend to the provider gateway. Any liability for the data after it enters the gateway belongs to the provider.

There are many ways to implement secure, PCI compliant payment solutions. Don’t leave your compliance and the safety of cardholder data to chance. Paragon Payment Solutions is your trusted partner for integrated payments.

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Point-to-Point Encryption for Software Providers