With the adoption of the new eIDAS 2regulations, Europe has taken a major step forward in its digital transformation. This groundbreaking legal framework lays the foundations for aEuropean digital identity, notably through the European Digital Identity Wallet (EUDI Wallet). This tool promises to facilitate and secure digital interactions for citizens and businesses throughout the European Union.
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Countries such as Italy and Andorra have already begun deploying it, while many others are aiming for full implementation by 2027, when its adoption will become mandatory.
What is the role of the EUDI wallet? How will it impact European digital identity? What are the opportunities for businesses?
European digital identity and the European digital identity portfolio
European digital identity principles.
Faced with the growing threat of fraud and identity theft, the European Union has launched the European Digital Identity Initiative, also known as EU Digital Identity (EUDI), as part of the revision of the eIDAS (Electronic Identification, Authentication and Trust Services) regulation. It aims to provide all citizens, residents and businesses in member states with a secure, convenient and universal means of proving their identity and accessing digital services, in both the public and private sectors.
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Why was the European digital identity created?
- Meeting citizens' expectations
Faced with increasing digitization, European citizens are expressing a growing need for a single tool to authenticate themselves online, without having to juggle several IDs or passwords.
- Fighting fraud and identity theft
With cyber-attacks, identity theft and document fraud on the increase, a reinforced digital identity system has become indispensable. It is crucial to verify, in every digital interaction, that the identity of the person with whom we are exchanging is indeed who they claim to be. The EUDI wallet uses advanced technologies to guarantee maximum security.
- Facilitating cross-border trade
One of the initiative's key objectives is to streamline administrative procedures between member countries. Today, many citizens and businesses encounter obstacles when interacting with foreign administrations (e.g. opening a bank account in another EU country). With the European digital identity, these procedures will be simplified and accessible via a standardized, universal system.
- Strengthening European digital sovereignty
The European Union is seeking to reduce its dependence on non-European technology giants (the GAFAMs) and offer an alternative based on its own values: transparency, personal data protection and sovereignty.
- Accelerating the EU's digital transformation
The European Commission has set a target of 80% of European citizens having an EUDI wallet by 2030. This project is part of a wider drive to make Europe a world leader in digital technology, while ensuring digital inclusion for all.
What is the European Digital Identity Wallet (EUDI Wallet)?
The European Digital Identity Wallet (EUDI Wallet) is at the heart of the European Union's vision for harmonized and secure digitalization. This innovative tool, accessible via smartphone applications, aims to simplify and secure digital interactions between citizens, businesses and administrations.
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Opportunities and prospects for Europe's citizens and businesses
For citizens
EUDI Wallet (European Digital Identity Wallet) revolutionizes digital identity management for European citizens, offering a secure, convenient and inclusive solution. It simplifies administrative procedures, such as enrolling at university or opening a bank account, by enabling instant sharing of digital documents. This digital wallet also guarantees total control of personal data, limiting its transmission to what is strictly necessary, while promoting numerous use cases in all sectors: travel, employment, education or health. Accessible to all, it removes geographical and administrative barriers, reinforcing European digital sovereignty and transforming interactions with administrations and businesses.
For companies
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In addition to operational gains, EUDI Wallet opens the way to new use cases. These include securing financial transactions by sharing certificates such as Kbis and IBAN, and managing power of attorney. These innovations enable companies to better protect themselves against fraud and exploit the potential of an interoperable digital ecosystem.
European consortiums, the catalysts of the European identity wallet
NOBID
The NOBID (Nordic-Baltic eID) consortium brings together the Nordic and Baltic countries in a pilot project aimed at integrating national digital identity (eID) solutions to promote smooth cross-border payments via the European Digital Identity Wallet (EUDI Wallet). Building on already highly advanced digital infrastructures, NOBID explores strategic use cases to simplify transactions within Europe.
This consortium brings together leading partners, including banks, financial institutions and major technology suppliers, to develop a solution aligned with the highest security standards (eIDAS) and tailored to users' needs. NOBID aims to lay the foundations for tomorrow's digital payments, while boosting the adoption of EUDI Wallet by European citizens.
EWC
The EU Digital Identity Wallet Consortium (EWC), led by Sweden and Finland with the support of over 60 public and private partners, is a major initiative selected by the European Commission to develop pilot projects around the EU Digital Identity Wallet (EUDI). Its objectives include the transformation of digital identity management for secure and confidential transactions, the implementation of Digital Travel Credentials (DTC ) to simplify travel, and the improvement of organizational interactions via digital identity.
Potential
The POTENTIAL consortium is one of four pilot projects supported by the European Commission to test the prototype of the European Digital Identity Wallet (EUDI Wallet). Involving 148 participants from 19 EU countries and Ukraine, the project has been awarded a €16 million grant and will run for 26 months from its launch in April 2023. POTENTIAL focuses on six major use cases, such as e-government services, opening bank accounts, managing mobile driving licenses and electronic prescriptions. By combining public and private expertise, this consortium aims to simplify and secure digital procedures for European citizens, while testing the technical foundations of this digital transformation.
DC4EU
The DC4EU (Digital Credentials for Europe) consortium, supported by the European Commission as part of the Digital Europe program, aims to develop and test use cases for the European Digital Identity Wallet(EUDI Wallet) in the fields of education and social security. With a budget of 19.2 million euros over 24 months and coordinated by the Spanish government and 80 European organizations, DC4EU explores innovative solutions based on the European Blockchain Services Infrastructure(EBSI) and eIDAS standards.
WeBuild
Europe is planning to launch a new Large Scale Pilot dedicated to the digital identity of organizations. This project will enable companies to obtain a verified digital identity, simplifying verification processes such as KYS (Know Your Supplier) and KYB (Know Your Business), while strengthening the fight against fraud. The consortium is also focusing on the development of a digital identity wallet for enterprises, including payment functionalities, with 13 use cases identified, including business, supply chain, KYC/B and payments.
Conclusion
With the adoption of the eIDAS 2 regulation and the deployment of theEUDI Wallet, Europe has acquired a central tool for simplifying and securing digital interactions. This wallet embodies a vision of a sovereign digital world that respects personal data, offering citizens convenience and control, while enabling businesses to gain in efficiency and compliance. By aiming for mass adoption by 2030, the European Union is paving the way for a harmonized digital identity, capable of transforming exchanges across the continent in the long term.
1) Secure storage of personal information
EUDI Wallet enables secure local storage of a wide range of verified personal data, such as :
- Identity information (last name, first name, date of birth)
- Official documents such as driving licenses, diplomas or business cards
- Proof of interaction with public or private services (e.g. proof of address)
2) Secure, controlled data sharing
With EUDI Wallet, users have total control over the information they share.
- They can choose which data to present to a third party, and for how long, thanks to a system of explicit consent.
- Shared data is limited to what is strictly necessary ("selective disclosure" principle), which reinforces its protection against misuse.
3) Interoperability within the European Union
The wallet is designed to be interoperable in all EU member states, enabling citizens to use it in a cross-border context.
For example, a French citizen could enroll at a German university or open a bank account in Spain without having to physically provide any documents.
This interoperability is made possible by common technical standards defined under the eIDAS 2 regulation.
500 million
Gartner forecasts that 500 million people will be using digital identity wallets by 2026.
The EUDI Wallet opens up major opportunities for companies by simplifying, securing and accelerating their interactions with customers, partners and institutions. First and foremost, it optimizes procedures for verifying the identity of a natural or legal person (KYC/KYB), considerably reducing the associated costs and delays. Companies can thus streamline their processes while offering a better user experience. What's more, the digital wallet helps meet the growing demands of European regulations, notably in terms of data protection and eIDAS compliance.
According to the European Commission, 80% of European citizens should have an EUDI Wallet by 2030.