Why PCI P2PE certification matters for merchants

Today, Stitch offers PCI Point-to-Point Encryption (P2PE) – an end-to-end security programme assessed at the highest security standards – for any merchants that require in-person payments. 

As commerce becomes increasingly omnichannel, the way card data is handled at the point of payment matters more than ever. For merchants, protecting sensitive cardholder data is not only a security obligation but a foundational requirement for trust, scale and operational resilience.

This is where PCI Point-to-Point Encryption (P2PE) comes in. More specifically, this is why working with payment service providers that operate PCI-listed P2PE solutions, such as Stitch, can materially reduce risk and simplify compliance for merchants. 

This particular PCI-listed P2PE solution is held by only 133 companies worldwide at the time of writing, due to its rigorous security requirements, which means merchants can expect a world-class standard of security from companies who have it. 

What is PCI P2PE?

PCI P2PE is a security standard developed by the PCI Security Standards Council (PCI SSC) that defines how card data must be encrypted from the point of interaction (for example, a payment terminal) all the way through to a secure decryption environment.

A PCI-listed P2PE solution ensures that clear cardholder data is never exposed in merchant systems. From the moment the card is presented, the data is encrypted and remains unreadable until it reaches a controlled, validated environment operated by the solution provider.

Crucially, PCI P2PE is a complete, end-to-end security programme that covers hardware, software, cryptography, key management, logistics, monitoring and operational governance.

How PCI P2PE solution validation works

PCI P2PE validation is not a self-attestation. It is an independent, formal assessment of an entire solution against the PCI P2PE Standard.

To achieve validation, a provider must engage a PCI P2PE Qualified Security Assessor (QSA) to assess the full solution, including devices, applications, cryptographic controls, key management, decryption services and operational processes. This assessment also covers how the provider manages the solution over time, as well as the guidance given to merchants through the P2PE Instruction Manual, which defines how the solution must be deployed and operated.

The outcome of this work is a set of formal validation deliverables – most notably the P2PE Report on Validation (P-ROV) – alongside required attestations and programme documentation. These materials are submitted to the PCI SSC, where they undergo pre-screening and a quality-assurance review before the solution is accepted and listed.

However, validation doesn’t end once a solution is listed. Ongoing programme obligations apply, including annual revalidation and a full reassessment every three years, calculated from the listing acceptance date. This ensures that listed solutions continue to meet the standard as technology, threats and operational environments evolve.

Why PCI P2PE solution validation is difficult to obtain

As of writing, only 133 companies worldwide are validated and listed by PCI SSC, including Stitch. PCI P2PE is demanding because it is as much an operational and supply-chain discipline as it is a technical control.

The standard goes far beyond encryption. Providers must demonstrate robust controls across device handling, software development, cryptographic key management, decryption services, logistics, monitoring and governance. Each of these areas must be supported by detailed evidence and documentation.

Third-party dependencies add further complexity. If key services, such as decryption environments or key management systems, are not already listed PCI components, they must be assessed as part of the overall solution. This increases scope, coordination and scrutiny.

Change management is also rigorous. New devices, application updates or security-impacting changes are subject to formal processes and can require additional assessor involvement and PCI SSC review. This makes PCI P2PE a living programme rather than a one-off project.

Finally, ongoing maintenance is non-trivial. Annual revalidation and three-year reassessments require mature security operations, consistent evidence collection and sustained organisational commitment.

Why PCI P2PE matters for merchants

From a merchant perspective, the value of PCI P2PE lies in reduced card-data risk, clearer compliance boundaries and easier scaling of in-person payments.

The PCI SSC’s own guidance is explicit: only PCI-listed P2PE solutions are validated against the P2PE Standard. When deployed correctly, these solutions can significantly reduce the scope of PCI DSS requirements for merchants by ensuring that clear cardholder data never enters their systems.

In practice, this often means fewer in-store systems, networks and operational processes fall within PCI scope, reducing annual assessment effort and the ongoing cost of maintaining controls. By encrypting card data from the point of interaction through to a secure decryption environment, PCI P2PE also limits the impact of malware or internal system access, lowering the likelihood that a breach exposes usable card data.

For merchants operating at scale, this model supports faster rollout of new devices and locations. A validated, repeatable security framework allows compliance teams to approve expansion within well-defined guardrails, without re-evaluating core card-data handling for every deployment.

Why working with a PCI P2PE-listed payment services provider matters

For merchants, building and maintaining a PCI P2PE programme independently is impractical. The operational complexity and ongoing obligations make it far more effective to partner with a fintech that has already invested in achieving and maintaining PCI P2PE validation.

Working with a provider such as Stitch means merchants can benefit from a tested, independently validated security model, without having to own the underlying complexity. It enables secure, scalable card acceptance while simplifying compliance responsibilities and reducing exposure to card-data risk.

In a payments environment defined by scale, speed and scrutiny, PCI P2PE is not just about compliance. It is about engineering a safer, more resilient foundation for modern commerce.

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Frequently asked questions

What is PCI P2PE?

PCI Point-to-Point Encryption (P2PE) is a security standard that ensures card data is encrypted from the moment it is captured at the point of interaction until it reaches a secure decryption environment, preventing exposure within merchant systems.

Is PCI P2PE the same as PCI DSS compliance?

No. PCI P2PE is a separate standard. However, using a PCI-listed P2PE solution can significantly reduce the scope of PCI DSS requirements for merchants by keeping clear card data out of their environments.

How do I know if a P2PE solution is valid?

Only solutions that are formally assessed by a PCI P2PE Qualified Security Assessor and listed by the PCI Security Standards Council are considered validated P2PE solutions.

Why is PCI P2PE difficult to achieve?

P2PE covers more than encryption. It requires strong controls across devices, software, cryptography, key management, logistics, monitoring and governance, as well as ongoing revalidation and formal change management.

How does PCI P2PE reduce risk for merchants?

By encrypting card data from the point of interaction, P2PE reduces the chance that malware, system access or logging can expose usable card data, lowering the impact and likelihood of breaches.

Why should merchants work with a PCI P2PE-listed fintech?

Partnering with a PCI-listed provider allows merchants to benefit from a validated, end-to-end security programme without managing its complexity themselves, enabling faster rollout, simpler compliance and stronger security.

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