Why the EU Digital Identity Wallet matters now
A new pan-European way of proving who you are online is arriving, and it will change how businesses onboard customers, sign contracts and verify age or qualifications. Under the revised eIDAS Regulation – often called eIDAS 2.0 – every EU member state must offer citizens and businesses a certified European Digital Identity Wallet (EUDI Wallet). For many companies this is not just a new tool to adopt; it will become a legal obligation to accept. The organisations that prepare early will turn a compliance requirement into a smoother, cheaper and more trustworthy customer experience.
What is eIDAS 2.0 and the EUDI Wallet?
eIDAS 2.0 is the update to Regulation (EU) No 910/2014 on electronic identification and trust services. It entered into force on 20 May 2024 and introduces the European Digital Identity Wallet: a free mobile application, issued or recognised by each member state, in which people can store a verified digital identity together with electronic attestations of attributes – for example a driving licence, a diploma, a professional certificate or proof of age.
The wallet lets a user identify themselves and share only the specific data a service actually needs, under their own control. It also supports qualified electronic signatures, giving individuals a simple, legally recognised way to sign documents across borders.
Who is affected?
Two groups matter here. First, member states, which must make at least one certified wallet available. Second, private companies that ask customers to identify or authenticate themselves. Where a business already requires strong user authentication – think banks, financial services, telecoms, healthcare, travel, energy and large online platforms – it will be legally required to accept the EUDI Wallet as a means of identification. Even businesses that fall outside the mandatory scope will feel commercial pressure to accept it once customers expect it.
The most important points
Mandatory acceptance for many sectors
Once the wallets are live, relying parties in regulated sectors must accept them when they require identification. For financial institutions performing strong customer authentication, acceptance becomes mandatory within 36 months of the relevant implementing acts.
Data minimisation and user control
The wallet is built around selective disclosure. A bar can confirm a customer is over 18 without learning their name or date of birth. Businesses must design their verification flows to request only what is necessary, which aligns neatly with GDPR’s data minimisation principle.
Registration of relying parties
Companies that want to rely on wallet data will generally need to register as relying parties and declare in advance which attributes they intend to request. This transparency is part of the trust framework and cannot be treated as an afterthought.
The timeline you need to plan around
eIDAS 2.0 entered into force on 20 May 2024. The first implementing regulations were adopted in late 2024, setting the technical standards for the wallets. Member states must make at least one compliant wallet available to citizens and businesses by late 2026. Mandatory acceptance obligations for private relying parties then follow, with the key deadline for many regulated sectors falling in 2027. Because typical integration projects take many months, waiting until the deadline is a genuine risk.
Practical example
Imagine a Swedish fintech that today verifies new customers with a mix of national e-ID logins and manual document checks. Under eIDAS 2.0 the same customer could open an account by sharing a verified identity from their EUDI Wallet in seconds, with a qualified signature on the account agreement. The fintech reduces onboarding drop-off and fraud, but only if it has registered as a relying party and integrated wallet verification into its systems ahead of the acceptance deadline.
Common mistakes companies make
The most frequent error is treating the wallet as a distant IT project rather than a legal deadline with commercial upside. Others request more personal data than they need, undermining both trust and GDPR compliance. Some assume their current national e-ID solution is enough and overlook the cross-border dimension, which is precisely what the wallet is designed to solve. Finally, many underestimate the lead time required to register as a relying party and test integrations properly.
Recommended actions
Start by confirming whether your sector falls within the mandatory acceptance scope. Map every point in your customer journey where you verify identity, age, qualifications or authority to sign. Engage your identity or KYC provider now about EUDI Wallet support. Review your data requests against the principle of minimisation, and prepare the documentation needed to register as a relying party. Treating this as a 2026 priority rather than a 2027 scramble will pay off.
Frequently asked questions
When will the EU Digital Identity Wallet be available?
Each member state must make at least one certified wallet available to citizens and businesses by late 2026, following the technical standards set out in the implementing regulations.
Does my business have to accept the wallet?
If you operate in a regulated sector that requires strong customer authentication – such as banking, telecoms, healthcare, travel or energy – acceptance will become mandatory. Other businesses may accept it voluntarily and are likely to face growing customer demand to do so.
How does the wallet relate to GDPR?
The wallet supports selective disclosure, letting users share only the data a service needs. This aligns with GDPR’s data minimisation principle, but you remain responsible for requesting and processing only necessary data lawfully.
Conclusion
eIDAS 2.0 and the European Digital Identity Wallet will reshape digital identity across the EU. For businesses, the message is clear: understand whether you must accept the wallet, design privacy-friendly verification flows, and begin integration well before the 2027 deadlines. Handled well, this is a chance to reduce fraud, cut onboarding friction and build trust. At Lawgent we help companies navigate eIDAS 2.0, GDPR and digital compliance with practical, technology-driven legal support – so you can turn new regulation into a competitive advantage. Contact Lawgent to review your readiness for the EU Digital Identity Wallet.
