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What is the difference between PAP and MSCHAPv2 authentication?

Looking at picking a RADIUS protocol for authentication with Microsoft NPS and trying to understand to pros / cons for PAP and MSCHAPv2.

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PAP uses a two-way handshake for authentication, CHAP uses a three-way handshake for authentication, and MS-CHAPv2 adds mutual authentication.

How you actually configure these depends on your router model, which you have not detailed in your question.

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PAP sends the password to the RADIUS server (encrypted on the wire by the Radius protocol, but it is still decrypted on the server), MSCHAPv2 does not, it uses a challenge/response mechanism.

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