SSL encryption serves to protect online transactions by creating a secure connection between the user's browser and the server. It encrypts data transferred during interactions, such as payment information, ensuring that sensitive details remain unreadable to unauthorized users. The SSL protocol utilizes cryptographic methods to verify the server’s identity, establishing trust between parties involved. This level of security is essential for maintaining user confidence in e-commerce and online banking. Furthermore, SSL encryption helps organizations comply with data protection regulations by safeguarding sensitive information during transmission.