The EU Digital ID wallet is coming — what does it mean for you?

EU Member States are required to offer at least one EU Digital Identity Wallet to all Citizens, Residents, and Businesses by 2026.  Let’s explore…

The EU Digital Identity Framework Regulation entered into force in May 2024. It updates the previous EU Digital Identity Framework Regulation(EU) No 910/2014 as regards establishing the European Digital Identity Framework. Member States will now be required to offer at least one EU Digital Identity Wallet to all Citizens, and Residents by 2026.

The wallet will be a mobile app enabling users to identify themselves to public and private online services, all over Europe. In addition, users will be able to store, present and share digital documents (everything from university diplomas to train tickets) as well as electronically sign or seal documents.

Identity: one of the great challenges of the digital age

Trust matters when you are doing business with someone or trying to access a service of some sort. But in a world of remote transactions behind screens, trust is hard to establish. How can you know for sure that the other party is genuine? How do you even know they are human? That’s why in June 2021, the European Commission set out to tackle this problem head on. 

It proposed to give every EU citizen a set of strong digital identity credentials that will be recognised anywhere in the zone. These credentials will be accessible from digital wallets and available to anyone from their mobile device. What will this mean? Simply, it will give any EU citizen or business the ability to prove their identity or any entitlements quickly and reliably. This will make it much easier to access public and private sector services online – or to simply transact. Previously complicated and time-consuming processes will become simple and quick. 

The EU Digital ID wallet in practice: business

By making digital transactions safe and fast between EU member states, the EU Digital ID wallet will deliver significant benefits to businesses. It should reduce fraud and improve rates of payment completion online. In short, companies will have much more control of the data they wish to share. As Thierry Breton, Commissioner for Internal Market, says: “Our European companies, large and small, will also benefit from this digital identity. They will be able to offer a wide range of new services since the proposal offers a solution for secure and trusted identification services.”

The wallet will help enterprises to improve day-to-day activities in their own workplaces. Take human resources for example. HR departments will be able to quickly verify the identity of a job candidate and authenticate any documents they submit to support their applications. They can also insert payslips into the wallet app. And don’t forget that the digital ID doesn’t just enable attribute sharing. It also supports digital signatures. The wallet can be used to digitally sign work contracts and legal permits. This will make the work of purchasing and procurement teams much easier. They will be able to prove the company’s identity by sharing a verified registration certificate with suppliers. Treasury departments will also benefit. They will be able to file and complete tax returns much more quickly. The ability to sign contracts digitally will have many benefits. Companies will drastically reduce their need to print, sign, scan and send paper documents by post. This will save time and money. It should also be good for the planet by reducing waste and the number of journeys.

The EU Digital ID wallet in practice: citizens

Discussions of digital identity can be bewilderingly technical. So, to understand the concept, it helps to think about the consumer experience. Most users will access the EU Digital ID wallet in the form of a smartphone app. Billions of people regularly use mobile apps, so the process will be familiar to the vast majority of citizens and businesses.

EU citizens will be able to download the wallet app from the major app stores and have their identity verified with high level of assurance to onboard to their wallet. Once done, they will be able to request their key identity credentials and electronic attestations from official institutions (ex: driver license, health pass, vehicle card registration, diplomas, etc..)  and from private service providers (ex: IBAN bank credential, verified utility bill, etc…). When these credentials are approved and installed, they will be listed clearly on the app. Later, the user may be able to add more credentials from other enterprises with trusted data such as airlines and insurance companies.

With the app installed, the user will be able to select the credential needed to complete a transaction, and authenticate using a password, PIN, biometric or similar.
Let's consider some hypothetical use cases for the EU digital wallet. Obviously, much of this analysis will be guesswork; the wallet is still in the development stage. But enough information has been realised by the EU to make it possible to speculate.

Opening a bank account
In the analogue world, opening a bank account is time-consuming and complicated. The user has to fill out a long registration form. Then the bank asks for (paper) identity documents. It may take several days to check them. If either side makes a mistake, there will be further delays. With the EU Digital ID wallet, the bank can request the necessary credentials from the applicant. He or she selects them, and in seconds they are verified by the bank. The process even includes an eSignature that signals the applicant’s agreement.

Enrolling at university 
This will be especially useful for EU citizens studying outside of their home country. The student can use her EU Digital ID wallet to access, for example, the diploma she gained in one country and have it accepted instantly in any other EU country. 

Entering a nightclub
This is a useful use case to explore because it shows how users will be in control of their data. Here, the nightclub just wants proof of age. Previously, a person might need to show a passport or driving licence to gain entry. These documents reveal the holder's age, address, place of birth and more. None of this is necessary in this example. With the EU Digital ID wallet, the person can provide trusted proof of age and nothing more. The process might also include an eTimestamp, providing electronic proof that the transaction occurred at a specific time.

The development of the EU Digital ID wallet is an important moment for EU citizens and businesses. As the world migrates from ‘analogue’ to digital transactions, it represents an opportunity to make online interactions of all types (buying/selling, storing identity, registering permits, sharing certificates) safe and quick. The EU Digital ID wallet promises to reduce friction that hampers so many digital processes today. As adoption of the wallet grows, this should build a stronger Europe for people and companies across the union.