By the end of the year, each Member State must make available to its citizens at least one digital identity wallet recognized throughout the EU.
The European Digital Identity Wallet has been a long time coming. In June 2021, the European Commission presented the EU Digital ID Wallet (EUDI) as an ultra-secure electronic vault allowing European Union citizens to store their identity documents and other secure credentials such as an ID card, a diploma, or a medical certificate.
According to Brussels, this universal identification service was intended to simplify the daily lives of Europeans when renewing a passport, applying for a bank loan, signing up for a phone plan, renting an apartment, filing a tax return, or enrolling in a university located in a Member State other than their own.
Some five years later, this famous EUDI, introduced by the European eIDAS 2.0 Regulation, is finally on the horizon. By December 31, 2026, each Member State must make at least one EU digital identity wallet available to its citizens, residents, and businesses.
Then, one year later, by the end of 2027, this wallet will be able to be used as a strong authentication service for private and public services requiring a high level of security. Companies in regulated sectors, such as banking and insurance, and very large platforms designated by the Digital Services Act (DSA)—such as Amazon, Booking, or LinkedIn—will be required to accept EUDI wallets as a means of authentication.
First use case: a strong authentication service
Since 2022, large-scale pilot projects, involving businesses and public authorities, have been testing the interoperability and security of this digital identity wallet across various use cases. A technical reference framework, Architecture Reference Framework (ARF), defines a set of common standards and technical specifications to ensure its uniform integration within the EU. The European Commission has also published online the list of qualified trust service providersthat comply with this framework. In France, these include the Agende nationale des titres sécurisés (ANTS), BPCE, Cegedim, and Docaposte.
Starting with identity, EUDI will, at launch, be only the embryonic form of the universal access key it is destined to become. As its name suggests, France Identité already provides this identification service at the national level. Two years after its launch, this app has reached the milestone of 4 million users. It allows users to log in to public services via FranceConnect without a username or password, and also to digitize their ID card, driver’s license, vehicle registration, or health insurance card.
This identification service reduces the risk of fraud or hacking. Currently, when you check in at a hotel, the front desk clerk asks for your ID card, and a scan of it is often stored locally with no guarantee that it will be protected or deleted after the legal retention period.
Strengthening the GDPR’s principle of data minimization
In the future, the EUDI will be expanded to include verifiable credentials—digital certificates, such as proof of residence or bank account details—issued by trusted third parties like government agencies, banks, or educational institutions.
Holders of this enhanced wallet will be able to verify new attributes, such as an address or the attainment of a degree. An individual or organization will thus be able to prove a piece of information without having to disclose more than necessary. This selective disclosure fully aligns with the principle of data minimization, which is central to the European General Data Protection Regulation (GDPR).
According to Matthieu de Montvallon, CTO of Kipmi Digital Trust Continuity, a digital trust platform of the BeYs Group, “the EUDI gives citizens back control over their data. They have total control over the information they agree to disclose, while being able to revoke their consent at any time. They no longer have to contact the data controller to exercise their right to rectification or their right to be forgotten.”
“For businesses, GDPR compliance will be easier since they will no longer have access to information that is not essential to the purpose of the processing,” continues Matthieu de Montvallon. As the question arises of restricting minors’ access to certain adult websites or gambling sites—and eventually to social media—the EUDI will allow for the sharing of only the required information, namely proof of age, without having to provide one’s date of birth, name, or place of residence.
Streamlining the sign-up process
Above all, the EUDI will greatly simplify the subscription process. When arriving at the car rental agency, the driver will already have all the necessary documents for their application on their smartphone: passport, driver’s license, credit card, and even the no-claims bonus rate from their insurance policy to qualify for a preferential rate. Qualified service providers will enhance the digital wallet by enabling the storage of documents in a secure electronic vault while also providing electronic signatures.
Given the benefits for the user, the concept has everything it takes to win people over. In France, the insurer Generali tested BeYs’ Kipmi digital identity wallet to streamline the customer experience. The processes involved in taking out an insurance policy or managing a claim are fraught with frustrations when it comes to gathering and submitting a large number of supporting documents. The three-month trial proved successful. 78% of customers agreed to use the alternative to the traditional process.
For Michaël Lakhal, chief product officer at Signaturit, the key to the wallet’s success lies precisely in its widespread adoption. “If it’s used only by a few early adopters, it won’t be of interest.” Drawing a parallel with online income tax filing, which was introduced twenty years ago, he hopes that government incentives and media coverage of the service will help it take off.
France can also take inspiration from its neighbors. In Belgium, the mobile app istme (pronounced “It’s me”) has attracted eight million users. Featuring electronic signatures, it enables nearly 600 million transactions per year with partners such as BNP Paribas, Orange, AXA, and Engie. From a smartphone, Istme is activated via a fingerprint or facial recognition.
Combating employment fraud
According to Michaël Lakhal, the widespread adoption of electronic invoicing, set to begin on September 1, will be another driving factor—but this time on the corporate side. “An individual, an executive, or an authorized representative with signing authority, or a legal entity must prove that they are authorized to carry out a specific transaction.” The wallet will address the need to enhance the KYB (Know Your Business) process, which allows a company to verify that the business with which it has a commercial relationship is real, legitimate, and secure.
Another, more surprising use case: combating employment fraud, which is rampant in the construction and temporary staffing sectors. “With the shift to digital recruitment processes since the Covid crisis, the person who appears during the video interview is not always the one who shows up on the job site,” explains Michaël Lakhal. Equipped with a digital wallet, the new hire will need to authenticate themselves—via facial recognition or by scanning a QR code—to access their new employer’s premises and activate their workstation.
