10 things businesses need to know about the EU Digital Identity Wallet
The EU Digital Identity Wallet (EUDI Wallet) is set to transform how businesses verify identities of EU residents and other businesses. Whether you’re in financial services, insurance, education or any other industry—here's what you need to know.
1. It’s coming by December 2026
All EU Member States must provide their residents a national digital identity and at least one EUDI Wallet app by December 2026. This means there will be 27+ national EUDI Wallets built to common specifications in the EU. EEA countries (Norway, Iceland, Liechtenstein) get an extra year. This is mandated by EU law under the revised eIDAS regulation, commonly referred to as eIDAS 2.0.
2. Every EU resident is entitled to their national EUDI Wallet for free
All EU residents will be entitled to free access to their country’s version of the EUDI Wallet, along with a national eID provided through this wallet. It will be a secure app that can be downloaded on their smartphone, similar to other digital wallets. Use of the wallet is optional—they can still use existing solutions. Business wallets will also be available for managing organisational identities.
–"The Commission will propose a secure European e-identity. One that we trust and that any citizen can use anywhere in Europe to do anything from paying your taxes to renting a bicycle. A technology where we can control ourselves what data and how data is used."
3. Regulated industries must accept it by 2027
By 2027, regulated sectors like public services, banking, financial services, telecommunications, energy, healthcare, transport, and education requiring Strong Customer Authentication (SCA) must accept the EUDI Wallet for authentication alongside their existing solutions, such as eIDs, biometric logins or other types of authentication. In reality, these businesses will need to accept any of the 30+ national EUDI Wallets so users can sign in with their wallet, access services, authorise payment transactions and much more. Non compliance can result in heavy penalties from the European Commission.
This requirement also extends to Very Large Online Platforms (VLOPs) as defined under the Digital Services Act (DSA), which will be mandated to accept the EUDI Wallet for user authentication.
5.The EUDI wallet will work across borders
The wallet aims to be fully interoperable across EU Member States. That means a Danish resident can use their Danish wallet to open a bank account in Germany or rent a car in Spain. For businesses, this Pan-EU acceptance of the wallet means faster, cheaper identity verification across borders.
6.The EUDI wallet will have government-grade security
The EUDI Wallet will be certified to meet the highest level of security assurance equivalent to the current eIDAS Level of Assurance “High”. It is mandated by a strict legal and technical framework. To be approved, every wallet must be certified by an accredited Conformity Assessment Body (CAB).
Organisations verifying users via the wallet will receive tamper-proof credentials issued by trusted bodies (like governments and banks). In plain terms: it can be trusted at the same level as today’s most secure government-issued eIDs.
7. It is built with data privacy and GDPR compliance at its core
The wallet is designed around the principle of "selective disclosure." This means organisations can request only the data they need, like using a feature called "zero-knowledge proof" to verify if someone is over 18 without accessing their full date of birth, making GDPR compliance much easier.
8.The EUDI wallet is backed by the revised eIDAS regulation
The original eIDAS regulation (2014) enabled use of European eIDs – such as the Danish MitID or Swedish BankID – to access services in their countries.
The revised eIDAS regulation ( eIDAS 2) that became law in May 2024, introduced the EUDI Wallet. It sets the rules and standards for how the wallet works, which are detailed in the Architecture and Reference Framework (ARF) – the official technical blueprint that ensures the wallet is secure, consistent, and interoperable across the EU.
9. Organisations can also issue credentials to the wallet
Government agencies can add information such as a person’s residence permit, tax residency details, or real estate and vehicle ownership to a user’s wallet. Businesses can also add credentials like credit and mortgage information. This not only opens up several opportunities for businesses and the public sector to share information more seamlessly with citizens, but also helps unlock the true potential of wallets.
10. Businesses can have their own digital identity
The eIDAS 2.0 framework isn't just for individuals. It introduces the Organisational Digital Identity (ODI), often called a "business wallet." This allows a business (a legal person) to have its own verified digital identity. Real life use cases are currently being tested in the European Large Scale Pilot WE BUILD.
It’s a big deal for digital business
The EUDI Wallet is about a frictionless, secure digital identity across Europe. For businesses, this means:
- Effortless verification of a user's identity and other credentials across borders for Onboarding/KYC/KYB.
- Frictionless logins and payment transactions.
- Secure electronic signatures, such as QES (qualified electronic signature), for contract and agreement signing.
- And an opportunity for businesses to make digital documents and other information available in a user's wallet.
In addition, it allows for trustworthy sharing of digital information:
- Avoiding typos when manually entering information.
- Allowing fast and accurate information-sharing, removing the need for filling out online forms.
- Relying on verifiable and tamper-free information that can be linked to the data source.
- Reduced fraud.
The EUDI Wallet is more than just a wallet for digital IDs – it’s the foundation for a more secure, unified digital economy in Europe. If your business operates in the EU, now’s the time to prepare. Start reviewing your onboarding flows, authentication methods, and how you request user data.
Where Signicat can help
ID verification, authentication and signing via the EUDI Wallet
Signicat can help businesses verify a user's identity via the European Digital Identity Wallet as a seamless extension to verifying with eIDs or ID documents. Whether it is Onboarding/KYC, authentication or electronic signing, if it can be done with an eID or ID document check today, it can also be done with the EUDI Wallet tomorrow.
Issuing verified credentials to the wallet
Signicat, a Qualified Trust Service Provider, helps businesses, government agencies, and wallet issuers issue verified credentials into any digital identity wallet, including the EUDI Wallet. This capability to issue data into digital identity wallets has been demonstrated with the Norwegian government as part of the NOBID Large Scale Pilot.
Signicat is an organisation on the EU Trusted Service list, part of three EUDI Large Scale Pilots and has a track record of offering banking grade services meeting the strictest security and compliance requirements in Europe.