PGP stands for Pretty Good Privacy. It is a widely used hybrid encryption system that combines symmetric and asymmetric encryption to encrypt and then decrypt cipher text. This approach generally provides stronger security, especially for communications over untrusted networks.
PGP encryption provides end-to-end encryption, integrity checking and authentication. It is commonly used for encrypting and decrypting texts, files, directories and whole disk partitions. Originally developed by Phil Zimmermann in 1991, PGP file encryption remains popular today due to its strength in securing sensitive data.
This page covers everything you need to know about PGP file encryption, including how PGP works, its key benefits, integration with managed file transfer (MFT), best practices, and more - helping you decide if PGP is the right choice for your requirements
PGP encryption uses a hybrid encryption system that combines the efficiency of symmetric encryption with the security of asymmetric (public-key) encryption, along with digital signatures to ensure authentication and integrity.
Each user has a unique public/private key pair, which is used to encrypt and decrypt data, as well as to sign and verify messages. Both the sender and recipient need to exchange their public keys before any transfer can take place.
The sender generates a one-time session key (symmetric) to encrypt the message or file. Symmetric encryption is computationally efficient, making it suitable for encrypting larger amounts of data.
The sender encrypts the transfer using the recipient’s public key (asymmetric). Only the recipient’s corresponding private key can decrypt this session key.
The recipient uses their private key to decrypt the session key, then uses the session key to decrypt the contents of the file transfer.
For integrity checking and to make sure the content hasn’t been tampered with in transit, the sender uses their private key to digitally ‘sign’ the encrypted file. For authentication and to check the sender is who you think they are, the recipient uses the sender’s public key to verify and validate the sender's identity.
Watch this video for a simplified explanation of how PGP encryption software works:
PGP provides a range of features that make it a good choice for protecting business data. Some of the advantages of using PGP encryption include:
PGP is generally considered more secure than symmetric encryption alone. Even if the communication channel is compromised, private keys and encrypted files remain safe.
Built-in digital signing automatically verifies the sender’s identity and ensures that files haven’t been altered.
Files remain protected irrespective of whether the communication channel used to send them is protected.
PGP is widely supported across file transfer and email tools, allowing secure sharing with third parties who may use different software.
When used for email encryption, PGP helps prevent spoofing and impersonation by verifying the sender.
PGP is simple to implement, and well documented, making it accessible without extensive training. With more than three decades of trusted performance, it’s no surprise that countless businesses continue to depend on this method of encryption.
While PGP encryption offers strong benefits, organisations should also consider its potential disadvantages and limitations. Proper key management is critical. It's important users exchange and protect their keys correctly, as accidentally sharing a private key can compromise security. Additionally, PGP’s reliance on asymmetric encryption can make it slower than purely symmetric solutions, particularly for large files, although its hybrid approach helps mitigate this issue.
Even with PGP, organisations may still want to use complementary solutions, such as secure file transfer protocols or managed file transfer (MFT) software, to maintain operational efficiency, support compliance, and add extra layers of protection during file transfers.
Most Managed File Transfer solutions including Globalscape, GoAnywhere, Diplomat MFT, Axway, Thru and MOVEit can support PGP encryption, however it usually requires a separately licensed add-on module, offered as an optional purchase rather than built-in functionality.
Within an MFT environment, the PGP module is used to secure files at the file level, ensuring they remain encrypted at both in-transit and at rest. This means that even if a transport channel or storage system is compromised, the data itself remains protected from unauthorised access.
In a typical automated workflow, files arriving in a staging folder are PGP encrypted and transferred over SFTP to trading partners, removing the need for manual intervention. Many MFT platforms also include built-in key management tools, making it easier to manage PGP keys, certificates, and expiration dates - tasks that can otherwise be complex and time-consuming.
From a compliance standpoint, using PGP within an MFT solution helps organisations meet regulatory standards such as GDPR, HIPAA, and DORA, which often mandate strong encryption and access controls. When combined with secure transport protocols, PGP enables end-to-end security, layering network-level protection with file-level encryption for comprehensive coverage.
Ultimately, MFT provides the structure, automation, and monitoring needed for secure and reliable file exchanges, while PGP delivers robust, standards-based encryption to protect the data itself.
If PGP file encryption has not yet been enabled in your MFT environment, it may be worth exploring how it can further strengthen your file transfer security and compliance posture.
PGP provides encryption at rest or can be used to protect a file at a particular stage within an otherwise non-encrypted workflow. It is particularly useful for organisations that need to meet compliance requirements, protect sensitive data, or integrate with external partners using PGP.
For example, one of our customers approached us with a PGP requirement for their accounts process. Their workflow needed files to be placed in a specific folder where they would be PGP encrypted before being moved to another folder for collection by their bank. This step allowed the business to bypass fees that the bank would normally charge for processing the files.
In this case, the requirement was driven by the bank’s use of PGP encryption. By implementing it, the business ensured compliance, secured sensitive financial files, and saved money in the process.
PGP is very straightforward to use, even for administrators who are new to it. However, following a few key best practices can help ensure that your encryption remains strong and your data stays secure:
While PGP is highly secure, reusing keys increases risk if one key is ever compromised. It’s best to create a new key-pair for each use case or trading partner, limiting potential exposure.
When generating a key-pair, always try to select the strongest key length, key format, and signing algorithm supported. Also keep in mind that if you're sending encrypted content to a third-party, they may not support certain configurations, and so you may need to compromise to maintain compatibility.
Configure your key-pairs to expire between one to two years. This forces periodic rotation of a key-pair, which limits risk and exposure if an incumbent key-pair is compromised, and serves as a point in time in which security and strength can be reviewed. Automate key expiration alerts so trading partners aren't caught off guard by an expired PGP key breaking an overnight SFTP transfer.
If prompted for a passphrase when creating a key-pair, choose a strong, unique passphrase. Passphrases are typically used to protect key-pairs in storage of Managed File Transfer solutions. Without this, an exploit in the MFT solution could lead to compromised keys.
Never share your private key with any third-parties, under any circumstances. Private keys must remain confidential to maintain the integrity and security of your encrypted communications.
PGP (Pretty Good Privacy) and OpenPGP are closely related, but they are not the same thing. PGP is the original proprietary software now owned by Symantec for email and file encryption, while OpenPGP is the open, non-proprietary standard defined in RFC 4880 that specifies how PGP-style encryption and signatures should work.
In practice, most modern PGP tools are actually OpenPGP-compliant. This means files encrypted with one OpenPGP-compatible tool can usually be decrypted by another, provided the correct keys are used. One widely used OpenPGP implementation is GnuPG (GPG), a free and open-source software that works across many systems and is fully compatible with PGP-based tools.
The main difference between PGP and OpenPGP lies not in the encryption itself, but in the surrounding features, such as usability, automation, management, and support.
PGP encryption is widely used by many organisations across a wide range of sectors to protect sensitive data and maintain secure communications. While the underlying technology is the same, its day-to-day applications vary depending on industry needs.
Finance and Banking: An investment firm sends encrypted portfolio reports to institutional clients nightly. Each client has a unique PGP public key. The MFT platform automatically encrypts each file with the recipient's PGP public key and delivers it over SFTP on a nightly schedule.
Healthcare: A hospital trust sends patient referral data to a specialist clinic. Files containing NHS numbers and clinical notes are PGP-encrypted within the MFT system before transfer via SFTP. The trust's IT team manages the key pair centrally, with keys rotated annually.
Retail: A retailer exchanges PCI DSS-sensitive transaction data with payment processors. PGP encrypts the batch files at rest in a staging folder before automated transfer to the processor's SFTP endpoint.
Government: A local authority shares sensitive citizen data with central government departments. Files are PGP-encrypted and transferred via MFT, with keys exchanged via secure courier rather than email.
Logistics: Manufacturing, engineering, and logistic organisations often exchange proprietary designs, supply chain data, and operational plans. By using PGP encryption, their information is protected when sent between third parties, partners, or suppliers, safeguarding intellectual property and critical business operations from interception or cyber threats.
Cross-industry: An organisation migrating from manual PGP (command-line GPG scripts, emailing files, manually managing key rotation) to automated PGP within a secure MFT platform. File arrival triggers encryption, automated transfer, and key expiry alerts.
Want to find out more about how secure file transfer solutions and encryption protocols are applied across industries? Check out our Managed File Transfer Industry Hub for more resources and guides.
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There’s been some publicity in recent years about Open PGP and hacking fears. In summary, malicious attackers can “spam” a public key sitting on a key server, adding these attestations over and over again until the key itself becomes too unwieldy to use by some software.
However, please be reassured this has no negative impact on your managed file transfer solution at all. When creating a transaction to move files between an MFT customer and an external customer, partner, supplier, or vendor it is always the two sides of the file transfer that coordinate the exchange of public keys, either through email or a file transfer protocol like SFTP. So since those public keys are not put onto a public Key Server, they will not have extraneous attestations attached to them, and both sides will be able to process the keys just fine.
Whether you’re new to Managed File Transfer or looking for guidance on implementing PGP file encryption, Pro2col can help. As the leading file transfer consultancy - with over two decades of experience - we provide vendor-agnostic advice tailored to your business needs.
If you want to deepen your understanding of secure file transfer protocols, encryption, or any other aspects of working with an MFT solution, consider taking the Certified File Transfer Professional (CFTP) course. It is the only vendor-independent file transfer certification, giving you the knowledge needed to implement secure file transfer effectively within your organisation.
Alternatively, if you are evaluating solutions with PGP capabilities, take advantage of our free MFT Comparison Service. Simply answer a few questions about your requirements, and our experts will recommend the best solution for your business.
Take the next step today by exploring our resources, requesting a consultation, or speaking with one of our experts to ensure your organisation’s file transfers are secure, compliant, and efficient.
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Read The WhitepaperAll of the MFT solutions which Pro2col works with offers some PGP capability, whether that is encrypting files stored on disk or as a step for encrypting/decrypting files while moving them from source to destination. However, PGP encryption software is often offered as an additional bolt-on or module which must be purchased for an additional fee.
In some platforms, PGP functionality is built in and enabled by default - for example, where it is used for on-disk file encryption. In these cases, encryption using PGP is transparent to users and administrators, providing immediate benefits usually without any configuration requirements.
Other MFT solutions use PGP as a step in automated workflow-based processing during file transfers. This approach usually requires some level of configuration, such as generating or importing public and private keys. In all cases, PGP has been designed to be very user friendly and while end users themselves would unlikely be exposed to such configuration, administrators will be untaxed by its requirements.
To understand whether PGP encryption is available out-of-the-box or as an additional module, and whether it is something which your organisation could benefit from, it’s best to get in touch with a member of the Pro2col team. You can contact us here to discuss your requirements in more detail.
In most implementations, PGP clients handle encryption and decryption automatically, often within FTP servers or as email client add-ons, so files are secured without manual intervention. However, the exchange of public keys remains a manual process. Because a security system is only as strong as its weakest point, security-conscious organisations often exchange keys physically, such as via courier, and configure keys to expire periodically (just like a password). Naturally, this is time-consuming, which is why many applications provide advance notices for key expiration, giving administrators time to plan for the exchange. Some applications allow you to create sub-keys with pre-configured expiry dates, enabling automated, long-term key rotation, reducing administrative overhead and avoiding potential outages.
With more than two-decades of experience in Managed File Transfer, Pro2col provides practical, end-to-end support for organisations that want to implement or expand the use of PGP encryption within their MFT environment.
If your chosen MFT platform offers PGP as an add-on module, we can manage the enablement process, which typically involves applying the appropriate license and activating the feature within the platform. From there, we install and configure the PGP components so they operate correctly within your infrastructure and align with your existing transfer workflows and security policies.
A critical part of any PGP rollout is key management. Pro2col works with your team to establish and structure your PGP keychain, including generating new public and private key pairs where required, importing partner keys, configuring trust settings, and defining practical key management procedures. We ensure that your encryption approach is not only secure but also maintainable over time.
We also design and configure real-world encryption and decryption workflows tailored to your use cases. This includes setting up automated processes for encrypting outbound files, decrypting inbound files, and applying encryption at rest where appropriate. As part of delivery, we demonstrate these workflows in operation and validate them through testing with your trading partners and internal systems to confirm successful encrypted exchanges.
Pro2col has helped over 1,000 organisations across more than 35 countries deploy secure file transfer and automation solutions - many of which rely on PGP encryption as a core security control. If you’re planning a new rollout or adding PGP capabilities to an existing MFT platform, our technical experts can guide and deliver the process from start to finish. You can also begin by taking our free file transfer comparison quiz to get matched with the most suitable solution for your requirements.
PGP encryption is widely recognised as a robust tool for meeting data protection and regulatory requirements. Many regulations, including GDPR, HIPAA, and DORA, mandate that sensitive information be secured both in transit and at rest. By encrypting files and communications at the file level, PGP ensures that even if data is intercepted or storage systems are compromised, unauthorised parties cannot access the content.
In addition to protecting confidentiality, PGP provides digital signatures that verify the integrity and authenticity of messages or files. This capability helps organisations demonstrate that data has not been tampered with and that it originates from a verified source.
When integrated with a secure managed file transfer solution, PGP helps organisations enforce automated, auditable workflows that align with compliance standards. Features like key management, automated encryption/decryption, and reporting ensure that secure data handling is consistent, verifiable, and meets regulatory expectations.
The cost of PGP encryption in managed file transfer solutions starts from $1,500 but can vary depending on the vendor, the level of encryption required, and whether it is included as part of a broader package or purchased as an add-on module. Pro2col has experience with a wide portfolio of managed file transfer solutions and can help you identify the best option for your needs.
Get in touch with us for an accurate quotation and guidance on how to implement and set up PGP encryption securely.
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