EUDI is just a(nother) wallet, why care?

Summary: The new digital identity initiative by the EU (European Union Digital Identity - EUDI) is somewhat similar to what the EU was striving for with SEPA - back in 2014. Both are following the same goals of interoperability, laying a foundation and were/ are mandatory for member states. But where do these initiatives differ? Read more below!

Remember 2014? 

A new acronym entered our lives - SEPA. The single euro payment area. Many wondered why this initiative was required, as we had functioning bank payments already. Sure, if you were sending money within your country's borders, no problem. But try sending a payment from Germany to Italy? Practically impossible, slow and expansive!

SEPA was more than a longer bank account number (now called IBAN); it was a huge infrastructure and standardization initiative with the goal of interoperability. SEPA brought challenges and costs to financial institutions but also opened the door to many opportunities and innovations. As an example, single market payment entries turned into multi-market roll out initiatives. 

Fast forward to 2026 - EUDI wallets for citizens! 

Yes, in 2026 governments (and he private sector) will start making the EUDI wallets available to citizens. But there is a lot more to it than just wallets. In this context, EUDI is a similar initiative to SEPA - fundamentally changing and aligning how digital identities are handled within the EU. The EUDI wallet framework will provide new infrastructure and rules for standardized usage of identity credentials, aiming for full interoperability. But it is not reinventing the wheel, but rather using existing standards, which have already been proven in other parts of the world. 

Equally, EUDI will require financial investment by companies and will pose challenges, especially to ensure full interoperability and reach user adoption goals. But ultimately, EUDI has the potential to provide a ground for innovations, cost and fraud reductions. This time, not just within the financial sector but across multiple sectors (incl. healthcare, travel or telecommunication). 

Lets move to 2027 - EUDI wallet must be accepted!

It will become really interesting when relevant institutions (as defined in Article 5f of the eIDAS Regulation (EU) 2024/1183) must accept the EUDI wallet by end 2027, as the wallet will be voluntary for citizens. Whilst SEPA was a mandatory change for users, the goal of the European commission - to reach 360 Mio. EU digital identities in use by 2030 - will heavily depend on the voluntary usage of citizens. The more use cases can be covered with the new EUDI wallet, the more relevant it will become for users - realizing even more savings for institutions. But institutions should and cannot just sit back and wait for user pick up, then can be in the driving seat. As one example, they can design user flows that default to EUDI as a method when users have previously used the wallet. 

So you should actually care - whether you are a business or an end user. Both can greatly benefit from this new ecosystem.

Is your institution ready for EUDI? ​​

etonec is a boutique consultancy specializing in digital identity, payments, and digital money — and we’re ready to help. We’re currently supporting clients across both the private and public sectors as they navigate the complexities of the EUDI Wallet. Our goal: to help you turn a compliance requirement into a strategic advantage.

Our EUDI Services:

• Assessment: Help you understand eIDAS 2.0 and the EUDI framework, assess their impact on your business, and identify how to stay compliant while capturing new opportunities.

• Design: Create a tailor-made EUDI strategy and solution design that meets both compliance and business objectives.

• Integration: Identify and connect with the right technology partners to ensure smooth integration of your EUDI approach.