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PEAPv0 and PEAPv1 both refer to the outer authentication method and are the mechanisms that create the secure TLS tunnel to protect subsequent authentication transactions. EAP-MSCHAPv2 and [[Extensible Authentication Protocol#EAP-GTC|EAP-GTC]] refer to the inner authentication methods which provide user or device authentication. A third authentication method commonly used with PEAP is [[Extensible Authentication Protocol#EAP-SIM|EAP-SIM]].
Within Cisco products, PEAPv0 supports inner EAP methods EAP-MSCHAPv2 and EAP-SIM while PEAPv1 supports inner EAP methods EAP-GTC and EAP-SIM. Since Microsoft only supports PEAPv0 and doesn’t support PEAPv1, Microsoft simply calls it "PEAP" without the v0 or v1 designator. Another difference between Microsoft and Cisco is that Microsoft only supports the EAP-MSCHAPv2 method and not the EAP-SIM method.
However, Microsoft supports another form of PEAPv0 (which Microsoft calls PEAP-EAP-TLS) that many Cisco and other third-party server and client software don’t support. PEAP-EAP-TLS requires client installation of a [[client-side]] [[digital certificate]] or a more secure smartcard. PEAP-EAP-TLS is very similar in operation to the original EAP-TLS but provides slightly more protection because portions of the client certificate that are unencrypted in EAP-TLS are encrypted in PEAP-EAP-TLS. Ultimately, PEAPv0/EAP-MSCHAPv2 is by far the most prevalent implementation of PEAP, due to the integration of PEAPv0 into [[Microsoft Windows]] products. Cisco's CSSC client now supports PEAP-EAP-TLS.
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