The EU Digital Identity (EUDI) Wallet (eIDAS 2.0) - A Business Guide to Benefits and Use Cases
Learn how the EU Digital Identity Wallet, under the eIDAS 2.0 regulation, Implementing Acts and ARF framework, is transforming digital identity in Europe. This article explores real-world business use cases - such as PID, LPID, PDA1, and PhotoID issuance - and highlights the benefits of integrating with digital wallets, including the Data Wallet and Organisation Wallet by iGrant.io. A must-read for enterprises looking to streamline identity verification, boost customer trust, and future-proof their digital services.
1.0 Introduction
The European Union’s Digital Identity Wallet or EUDI Wallet is poised to transform how individuals and organisations verify identity and share documents online. Part of the amended eIDAS framework (The European Digital Identity Framework), this initiative will provide every EU citizen, resident, and even business with a secure digital wallet for identification and credential storage [1].
Digital Identity Wallets can come in two primary forms: for individuals and organisations. Individual wallets are typically smartphone-based and available on Android and iOS platforms. The Data Wallet by iGrant.io allows users to receive, store, and share credentials securely.
Organisation or Business Wallets are cloud-based and tailored for legal entities, such as businesses, government agencies, and service providers. They enable organisations to issue and verify credentials and interact with other wallets. The Organisation Wallet by iGrant.io is designed to support scalable and secure credential workflows within enterprise ecosystems.
An EU Digital Identity Wallet is a digital tool that allows people and organisations to prove who they are, store and share trusted data, and even digitally sign forms – all under user control and with high security. By 2026, each EU Member State will offer at least one wallet to its people and companies, following standard EU specifications.
The EU Digital Identity Wallet isn’t just a new tech curiosity for businesses and enterprises; it’s a game-changer. It stands to streamline customer onboarding, enhance trust in online transactions, reduce fraud, and open the door to fully digital cross-border services. This article breaks down the EU Digital Identity Wallet, its regulatory and technical framework, key use cases (from personal ID to electronic signatures), and most importantly, the benefits and value propositions for businesses looking to integrate with this new digital ecosystem.
2.0 EU Digital Identity Wallet and the eIDAS Framework
The EU Digital Identity Wallet emerges from the amended eIDAS or (aka eIDAS 2.0) regulation, a major update to Europe’s electronic identification rules. The original eIDAS (Electronic Identification, Authentication and Trust Services) Regulation of 2014 enabled cross-border recognition of national eIDs, but the digital world has since evolved. The revised regulation (sometimes called the European Digital Identity Framework) was adopted in 2024 to keep pace with growing online service needs and to address privacy concerns. It introduces the concept of a unified European Digital Identity Wallet as a means for everyone to carry their digital identity in a user-controlled way and to access (public) services across the EU.
Under this framework, Member States are mandated to provide wallet apps in a coordinated, interoperable manner. The regulation entered into force in May 2024, and by 2026, every EU country must offer at least one wallet conforming to the common European standards. As an official, government-backed digital identity method, these wallets will be available to citizens, residents, and businesses at no cost. Crucially for businesses, the wallets are not limited to public services – private sector services (banks, fintech, e-commerce, employers, etc.) can rely on them for secure identification and data exchange.
2.1 Implementing Regulations and Common Standards (ARF)
The EU created a standard Toolbox of technical specifications to ensure all EU Digital Identity Wallets work seamlessly across borders. The cornerstone of this toolbox is the Architecture and Reference Framework (ARF) – a comprehensive blueprint of the wallet ecosystem. The ARF lays out common standards, protocols, and security requirements that all compliant wallets must follow, acting as a “rulebook” for developers and providers. In essence, it guarantees that a wallet issued in one country will be recognised and trusted in another, much like how an EU passport is interoperable across member states.
The ARF covers everything from data models to trust infrastructure. It specifies how personal identity data (PID) and other credentials are issued to the wallet, how they’re stored securely, and how they can be presented to a service provider. It also enshrines key principles like privacy-by-design and security-by-design. For example, the framework ensures that the user has full control over which attributes to share and that no party can track the user across different transactions – an important consideration for compliance with the GDPR and building user trust.
The European Commission and Member States are also finalising Implementing Acts (detailed regulations) to turn the technical specifications into law. These include standards for certification of the wallets’ security, governance models, and guidelines for private-sector integration. In practice, businesses don’t need to know the nitty-gritty of the ARF, but they will benefit from the outcomes: a wallet system that is uniform, interoperable, reliable, and easy to plug into.
2.2 Key Standards and Credential Formats
One reason the EU Digital Identity Wallet stands out is its adoption of cutting-edge credential formats and standards that balance security with privacy. Two notable technologies in the wallet’s design are Selective Disclosure JWT (SD-JWT) [1] and mobile documents (mdoc/mDL) as per ISO 18013-7. Understanding these helps businesses see how the wallet will safely handle data.
Selective Disclosure JWT (SD-JWT): Traditional JSON Web Tokens (JWTs) package identity information into a token that, when shared, reveals all contained data to the recipient. SD-JWT is an enhanced format that allows selective disclosure of attributes. In practice, a user’s wallet can prove a specific fact about them without revealing unnecessary details. For instance, an online service might only need to know that a customer is over 18 or has a valid business license, rather than seeing their full birthdate or company data. The SD-JWT standard, developed through the IETF, accomplishes this by cryptographically hashing claims and only revealing the ones the user consents to share. For businesses, this is a boon: you get the assurance of verified data you need (e.g. age, identity, qualifications) while respecting customer privacy, which builds trust and reduces your data liability as per the GDPR. It’s privacy-by-design in action and baked into the wallet’s architecture.
Mobile Document / Mobile Driver’s License (mdoc/mDL): The wallet will support digital credentials compliant with ISO/IEC 18013-7, the international standard for mobile driving licenses and IDs. In essence, ISO 18013-7 defines how to store, secure, and share an official ID (like a driver’s license) on a mobile device in a universally accepted way. This goes beyond just an ID picture – it’s a cryptographically signed, machine-verifiable credential. The EU Wallet leverages this for any Photo ID needs. For example, a user could have their driver’s license or national ID card digitally issued into their wallet and present it when needed (to a police officer, to rent a car, to check into a hotel, etc.). For businesses, supporting ISO-compliant digital IDs means you can trust the credential as much as a physical ID – it’s standardised and difficult to forge. It can streamline KYC processes (no more manual ID checks) and even enable entirely automated workflows at airports or banks with electronic verification. Because the wallet adheres to this global standard, businesses also gain interoperability beyond the EU (many countries are adopting the mDL standard, so in the future, an EU wallet’s digital ID could be recognised internationally).
In addition to SD-JWT and mDL, the EU Digital Identity Wallet framework aligns with the W3C Verifiable Credentials data model and uses protocols like OpenID Connect for presentations. The takeaway for enterprise architects is that the wallet isn’t reinventing the wheel – it’s using robust, widely discussed standards. This makes integration easier (many businesses already use OIDC/OAuth flows, which can be extended for wallet authentication) and ensures the solution is future-proof. Embracing these standards, the wallet enables selective data sharing and strong authentication methods that minimise data exposure while maximising trust.
3.0 Use Cases of the EU Digital Identity Wallet (EUDI Wallet) for Businesses
What practical applications will the EU Digital Identity Wallet have? While the ultimate possibilities are broad, several flagship use cases have been identified in the EU’s pilots and documents. These use cases illustrate how the wallet will function and how businesses might engage with it. Below are some of the key scenarios and digital credentials and why they matter:
Personal ID (PID) Issuance: Each wallet holder can receive a verified Person Identification Data (PID) credential – essentially a digital ID card issued by a trusted authority (like a national government identity provider). This PID contains core personal attributes (name, date of birth, nationality, etc.) and is the foundation of one’s digital identity. For businesses, you can reliably identify customers or users online with high assurance. Instead of asking users to upload scans of IDs or fill out lengthy verification forms, you can prompt them to share their PID from their wallet. The PID is government-backed and can reach a high level of assurance (LoA “High” under eIDAS), which is suitable even for regulated sectors like banking. Onboarding a new user (for example, creating a bank account or signing up for a telecom service) can become as simple as a one-click verification via the wallet. This dramatically reduces Know-Your-Customer (KYC) friction while combating identity fraud. \
Legal Person ID (LPID) Issuance: It’s not just natural persons with identities – companies and other organisations do, too. The wallet framework allows issuance of Legal Person Identification Data (LPID), which are credentials that represent a business’s identity details or a mandate of a person to act on behalf of a business. Imagine a digital version of a company registration extract or a power-of-attorney certificate delivered to an owner’s or executive’s wallet. With an LPID, a company representative can prove the legitimacy of their business (name, registration number, VAT, authorised representative status) in seconds. This is valuable in B2B transactions and supply chains. For instance, when onboarding a new supplier or signing a contract, your business could request the counterparty’s LPID via the wallet to instantly verify that they are a registered, legitimate business. It streamlines B2B due diligence and can facilitate faster trust in partnerships. A national business registry or a Chamber of Commerce authority might issue an LPID credential. All EU parties can trust its authenticity because it’s under the eIDAS wallet system. \
Digital Signature Integration (Qualified Signing): One of the wallet’s built-in superpowers is the ability to create electronic signatures and seals that are legally recognised. The eIDAS 2.0 framework envisions wallet users being able to apply Qualified Electronic Signatures (QES) – the highest legal grade of e-signature in the EU – using keys stored in or accessed by the wallet. For businesses, this is a huge opportunity to digitise paperwork fully. With customers and partners having wallets, you can collect signatures on contracts, consent forms, or transactions digitally without needing separate e-signature software or insecure email exchanges. For example, a bank could have a user sign a loan agreement through a wallet prompt, or an HR department could get a new hire’s signature on an employment contract via the wallet – the signature is legally binding and secure (protected by the wallet’s cryptographic device). Notably, the wallet will provide qualified signing by default and free of charge to users [1], lowering the barrier for individuals to sign electronically. This means the pool of people capable of high-assurance digital signing will dramatically increase, benefiting any enterprise that requires signed agreements or approvals. In short, the wallet turns every smartphone into a potential secure signing device, and businesses should be ready to leverage that for faster, paperless transactions. \
Portable Document A1 (PDA1) Issuance: Companies with employees working across EU borders are familiar with the paperwork required to prove social security arrangements – notably the Portable Document A1. The PDA1 is an EU form that confirms which country’s social security system an employee is under when they temporarily work in another country. Today, this is often a paper or PDF process, but the EU wallet will enable digital PDA1 credentials. Social security institutions can issue a PDA1 directly to an individual’s wallet, which the individual (or their employer) can then present to foreign authorities or clients as needed. For businesses, this simplifies HR compliance for postings abroad. If you send workers to multiple EU countries, you can more easily obtain and show their A1 certificates via the wallet, avoiding delays and ensuring regulatory compliance. No more chasing paper forms or worrying about lost documents – the wallet holds the proof of social contributions payment. This use case highlights how the wallet isn’t just about personal identity and official documents that grease the wheels of European cross-border operations. (Similarly, other social security and health documents like the European Health Insurance Card could be digitised in the wallet, reducing red tape for international businesses.) \
Digital Driving License / Photo ID (ISO 18013-7 mDL): A digital driver's license or other government-issued photo ID is one of the first credentials likely to populate the wallet. Many EU states plan mobile driving licences, and the wallet provides a common platform. A digital driving license in the wallet can also serve as a general photo ID based on the ISO 18013-7 standard for mDL [4]. This has several business applications. Consider the car rental industry: instead of checking a physical driver’s license at the counter, rental companies could accept a wallet-presented mDL, speeding up pickup processes. Or online age-restricted services – a streaming service or e-commerce site selling alcohol could verify a customer’s age via a one-time wallet credential share (e.g., confirming “18+” derived from the mDL) without ever seeing the person’s ID details. The ISO-standard photo ID in the wallet means businesses can trust the credential’s validity (it’s digitally signed by the issuing authority) and automate verification. It also opens up the possibility for new services – for example, a digital hotel check-in where a guest sends their ID info and signs a check-in form via wallet before arrival. Anywhere a photo ID is needed, the wallet can step in, making verifying identity faster and more convenient while reducing forgery risks.
These use cases scratch the surface of the EU Digital Identity Wallet’s potential. Other scenarios include electronic diplomas and professional certificates (for easier hiring across countries), payment account information, travel credentials (some pilots test digital travel documents), and more. The consistent theme is that the wallet can securely store verified, trusted credentials issued by authoritative sources, and users can share them with a tap on their device. For enterprises, if you need verified information from a user or partner, you can obtain it in seconds with the user’s consent – no more weeks of chasing documents or third-party verifications.
4.0 Benefits of the EU Digital Identity Wallet for Businesses
From the above, it’s clear the EU Digital Identity Wallet is not just a convenience for individuals – it offers tangible advantages to companies and service providers. Here are some of the key benefits and value propositions for businesses and enterprises:
Streamlined Customer Onboarding and KYC: Say goodbye to cumbersome identity checks. With the wallet, businesses can instantly receive customers' verified identity data (personal or corporate). This streamlines processes like new account registration, SIM card purchase, or signing up for financial services. It reduces manual paperwork and verification costs as the credential issuer guarantees authenticity. A process that once took days (scanning IDs, manual review) can now be done in minutes, improving conversion rates and user satisfaction.
Cross-Border Reach and Interoperability: The wallet is an EU-wide solution by design. A company in one member state can onboard or verify a user from any other EU country with equal ease and trust. This opens new markets – businesses can expand services across Europe without implementing country-specific ID solutions. As all wallets follow the common European standards, a relying party interface will work for all of them. In short, the wallet provides a pan-European trust infrastructure, helping enterprises operate seamlessly across borders.
Enhanced Security and Fraud Reduction: Credentials in the EU wallet are issued by official sources and are tamper-proof (digitally signed). This reduces the risk of fake identities or forged documents slipping through. Additionally, wallet authentication will use strong methods (biometrics/PIN and device cryptography), often with high assurance levels. Businesses can be more confident in who they are dealing with online, lowering fraud losses. For example, an online lender receiving a wallet ID and income certificate can trust the data instead of scanned documents that might be Photoshopped. This high level of assurance is especially critical in sensitive sectors like banking, insurance, and healthcare.
Cost Savings and Efficiency: In the long run, implementing wallet-based identity verification can be cheaper than continual manual processing or relying on multiple third-party verification services. Authentications become easier and cheaper as the European Commission notes for private companies. Over time, as wallet usage grows, businesses will see savings in customer support (fewer ID issues), compliance overhead, and paper handling. Automating workflows (like contract signing or vetting a business partner’s credentials) translates to operational efficiency.
Conduct More Business 100% Online: The wallet removes many reasons for physical presence or paper in transactions. As the Commission highlighted, companies can conduct more types of business entirely online. This means you can acquire customers, sign agreements, and deliver services without asking anyone to visit an office or mail documents. It boosts digital transformation strategies – even traditionally tricky processes like notarisations, certified mail, or in-person ID checks can be re-imagined through the wallet. Businesses that embrace the wallet will be well-positioned to offer seamless digital experiences end to end, which modern customers expect. \
Legally Compliant Digital Signatures: With the wallet’s qualified e-signature capability, obtaining signatures that meet legal requirements (like qualified electronic signatures under eIDAS) becomes straightforward. There’s no need for separate hardware tokens or proprietary signature platforms for your customers – they can use the wallet they already have. This lowers the barrier to getting necessary contracts signed quickly. For the business, it ensures the signatures are legally defensible (since EU trust services rules back them) and the signing process is user-friendly. It can significantly shorten sales cycles or procurement processes when documents can be signed and returned in minutes with a few taps by the signer.
Privacy Compliance and Customer Trust: The selective disclosure features of the wallet mean that businesses can practice data minimisation easily – you request and receive only the data you truly need. This is great for GDPR compliance (collecting less personal data, reducing storage liabilities) and building user trust. Customers are more likely to sign up or share info if they know they won’t be over-sharing. The wallet’s design inherently supports this, allowing users to approve exactly what information a service gets. By integrating with the wallet, companies can advertise that they respect user privacy (since the user controls their data sharing), which can be a competitive advantage in a privacy-conscious market.
Neutral and Trusted Authentication Option: The EU Digital Identity Wallet provides a neutral, public-sector-backed option for authentication. Unlike social logins (Google, Facebook) or private digital IDs, the wallet comes with the trust of government issuance and European-wide governance. For businesses, this means you are not dependent on any one big tech identity provider, and you avoid potential user concerns about commercial data tracking. It’s an independent, standards-based infrastructure. In the long term, this could foster a more diverse digital identity ecosystem where users can choose and businesses aren’t locked into proprietary systems. In essence, the wallet could become as ubiquitous as email – a common way for users to “log in” or share info, which any service can accept without special partnerships.
5.0 Conclusion
The EU Digital Identity Wallet represents a significant step forward in Europe’s digital economy, and its impact will be felt across both the public and private sectors. It offers a new universal tool for trust for businesses and enterprises - a way to know your customers and partners with certainty, transact seamlessly across borders, and cut the friction out of administrative processes. By adhering to robust standards and the eIDAS 2.0 legal framework, the wallet ensures that security, privacy, and interoperability are not afterthoughts but core features.
Enterprises should start exploring how to integrate the EU Digital Identity Wallet into their digital services. Whether it’s updating your onboarding workflows to accept wallet credentials, training your compliance teams on the new digital documents like PDA1, or collaborating in pilots, preparing now will pay off soon. Early adopters can differentiate themselves by offering customers a cutting-edge, convenient experience – imagine being among the first to let users sign up with a single wallet click or sign a contract on their phone with an official eIDAS-compliant signature.
In summary, the EU Digital Identity Wallet is coming fast (Member States are gearing up for 2025 pilots and the 2026 rollout) and promises safer, simpler digital interactions. It embodies the principle that individuals should control their identity data while providing businesses with verified information. By embracing the wallet, companies can boost trust with their users, reduce costs, and unlock fully digital growth opportunities. The future of digital identity in Europe is a wallet in everyone’s pocket, and businesses that make space for it will reap the benefits of a more trusted and efficient digital marketplace.
References
[1] European Digital Identity Framework / eIDAS 2.0. [Online]. Available: https://docs.igrant.io/regulations/reg-eu-digital-id-framework/ [Accessed: 12-Apr-2025].
[2] European Digital Identity Wallet Architecture and Reference Framework (ARF). [Online]. Available: https://eu-digital-identity-wallet.github.io/eudi-doc-architecture-and-reference-framework/latest/architecture-and-reference-framework-main/ [Accessed: 12-Apr-2025].
[3] IETF SD-JWT-based Verifiable Credentials (SD-JWT VC), Internet-Draft draft-ietf-oauth-sd-jwt-vc-08. [Online]. Available: https://www.ietf.org/archive/id/draft-ietf-oauth-sd-jwt-vc-08.html [Accessed: 12-Apr-2025].
[4] International Organization for Standardization. ISO/IEC 18013-7:2023 — Personal identification - ISO-compliant driving license — Part 7: Mobile driving license (mDL) application. [Online]. Available: https://www.iso.org/standard/82772.html [Accessed: 12-Apr-2025].
[5] EUDI Wallet Implementing Regulations [Online]. Available: https://docs.igrant.io/regulations/implementing-acts-integrity-and-core-functions/ [Accessed: 12-Apr-2025].