A hardware security module is a type of computing device that secures digital keys and encrypts data.
A hardware security module (HSM) is a computing device consisting of either a single or multiple processor chips and is used to secure digital keys, encrypt data and offer enhanced safety during cryptographic authentications.
HSMs are utilized in enterprises to protect data verification and transactions, and must follow strict certification, following the requirements of the Federal Information Processing Standard (FIPS). It must also use customized hardware, a secure OS, cryptographically stored and protected data secure networking
HSM hardware can be either general-purpose or transaction/payment or cloud-based.