There is provided a pluggable secure device identity module (SDIM) attached to a peripheral where the SDIM includes one or more secret functions provided by a third party that are used by the peripheral to provide additional security features or functions that can only be authenticated by the third party. The peripheral is attached to a computer and a secure provisioning manifest is used to authenticate and communicate with the peripheral. The computer includes a processor that executes an operating system and transaction software. A secure I/O module, that has a processor and software that is separate and isolated from the processing environment of the computer, uses the secure provisioning manifest to authenticate the peripheral and then to establish a secure encrypted session for communicating with the peripheral.