Fintechs, take note: If you’re doing business with European Union customers, you will be required to accept EU digital identity wallets next year.
What is a digital identity wallet?
A digital identity wallet stores electronic IDs (eIDs), proof of address documents, and other verified credentials. When issued by a government or other trusted agency, these wallets give businesses high assurance that a person is actually who they say they are.
The EU legislation eIDAS 2.0 mandates that every EU member state must provide citizens with a digital identity wallet by 2026 and that fintechs and many other private businesses must accept them starting in 2027.
But smart businesses aren’t waiting. With increasing concern about identity theft, consumers want to minimize the data they share, creating a strong demand for acceptance of digital wallets ASAP.
How can I prepare for EU digital identity wallets?
Because each member state issues its own wallet, businesses must support each wallet separately. Leading identity intelligence providers already support EU digital wallets, letting you automatically accept them during customer onboarding as they become available.
But many providers only support a few eIDs or lack accreditation. Be sure to choose a provider like Jumio with full, accredited support for mandatory credentials (e.g., name, date of birth) plus biometric data like a photo that can be compared to a live selfie for the highest assurance.
Next steps
If you have EU customers, start preparing now. Whether you’re mandated to accept these wallets or simply want to stay ahead of your competition, using a trusted identity intelligence provider can lift the burden and allow you to onboard customers with greater trust and efficiency.
To learn more about eIDAS and how to support digital wallets, see The eIDAS Primer.
