Why the European Digital Identity (EUDI) Wallet Matters

Summary: The European Union (EU) aims to strengthen its digital autonomy and reduce its dependence on foreign infrastructures that hundreds of millions of Europeans rely on every day. One area where this shift is especially visible is digital identity. Currently, there’s no unified European digital identity framework that works seamlessly across all EU Member States — but that’s about to change. The EU is developing two major initiatives: the European Digital Identity (EUDI) Wallet for individuals, and the European Business Wallet (EUBW) for companies. These trusted, EU-wide infrastructures will enable secure digital identification, authentication, electronic signatures — and a wide range of further use cases. Together, they will form the backbone of a more connected, digital Europe — where interactions across borders and sectors may be seamless and simple. This article provides an introduction to the EUDI Wallet.

What is the EUDI Wallet?

The EUDI Wallet will take the form of a mobile app, serving as an “all-in-one” digital wallet for personal identity documents and attributes. Its use will be voluntary for citizens. Once Member States have completed the mandatory roll out of the EUDI wallet by the end of 2026, it will include a digital version of your personal ID card—similar to the physical ID issued by your national authority—along with other identity-related credentials. Think of your university diploma, driver’s license, digital social security card, or even your organ donor card or concert tickets. Or think a bit more creatively: an access credential that lets you sign in to an online service, unlock a building, or even start a car.

All of these credentials can be stored within the EUDI Wallet, a fully European infrastructure with bold ambitions. The European Commission is aiming for 80% adoption by 2030—roughly 360 million citizens using the EUDI Wallet.

This is how credentials could, for example, look like.

What are benefits of the EUDI Wallet?

For citizens, the EUDI Wallet promises a new level of simplicity in everyday interactions. Today, many public and private sector processes—such as requesting municipal documents or opening a bank account through VideoIdent identification—remain cumbersome and time-consuming. They can take days, sometimes even weeks, to complete. The EUDI Wallet will change that. Because trusted, state-issued digital identity credentials and other verified documents are available directly on your mobile device, they can be instantly and securely shared with other apps or services.

In practice, this means identification processes could happen almost instantly—cutting down complexity and dramatically speeding up all sorts of processes. Another key benefit is individual empowerment. The EUDI Wallet puts citizens in control of their own data. Every data exchange requires explicit consent, so users always know (and steer) who has access to what—making privacy as well as transparency a built-in feature.

For companies, the EUDI Wallet offers simpler and faster access to digital services for customers, which can boost conversion rates, strengthen loyalty, and improve the overall user experience. At the same time, it helps reduce liability exposure and fraud risks through automated, government-backed identity verification, authentication, authorization, and electronic signatures. Businesses can expect direct cost savings from streamlined verification and compliance processes, and indirect benefits through reduced fraud, lower operational overhead, and less regulatory burden. Ultimately, for companies, the EUDI Wallet is not just a compliance play—it’s about unlocking efficiency, reducing costs, and creating new strategic opportunities for innovation and growth.

Why does the EUDI Wallet matter for banks?

According to Article 5f of the eIDAS 2.0 Regulation, financial institutions, payment service providers, and other regulated entities will be required to accept EUDI credentials for a range of use cases by the end of 2027.

Specifically, it's about supporting identification, authentication, authorization, and electronic signatures using EUDI credentials, and ensuring their systems are able to verify them seamlessly.

Let’s take a closer look at how banks can use the EUDI Wallet in practice:

• Identification: For all processes where banks need to identify new customers—for example, when opening a bank account—they will be required to accept the EUDI Wallet as an alternative method of identification.

• Authentication: When strong customer authentication (SCA) is needed, the EUDI Wallet will complement existing methods such as SMS-TANs or proprietary banking apps, offering a more seamless and secure user experience.

• Authorization: The EUDI Wallet can also be used to approve a payment from the user’s account (payment authorisation).

• Digital signatures: Qualified Electronic Signatures enabled via the EUDI Wallet can be used to sign payment-related documents digitally, e.g. for setting up a SEPA direct debit mandate.

Finally, banks and other regulated entities that fail to comply with the EUDI acceptance requirements face significant fines, underscoring the importance of early readiness and technical implementation.

What to do now?

Organizations — especially financial institutions — need to act now, and for good reason. Preparation is key to understanding the implications of the EUDI Wallet: ensuring compliance, avoiding fines, and adapting products and processes for this new era of digital identity. With the end-of-2027 deadline approaching, the clock is already ticking.

At the same time, many technical specifications—such as SCA flows via the EUDI Wallet—are still being developed, leaving a short window to help shape how they take form.

What needs to happen now?

1. Get ready to verify EUDI identity credentials — build or adapt systems to handle EUDI-based verification.

2. Update customer journey flows to integrate digital identity wallet options smoothly.

3. Explore credential issuance as a potential new business opportunity.

4. Develop a wallet strategy that aligns with your organization’s broader digital identity roadmap.

5. Identify and engage with key partners to enable both issuance and verification capabilities.

The role of etonec

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.

Let’s explore how we can support your journey.