By December 2026, every EU citizen will have access to a government-issued digital identity wallet. By December 2027, banks and very large online platforms with 45+ million monthly EU users must accept these digital credentials for authentication. This represents the largest digital identity deployment in history, affecting over 450 million Europeans and thousands of businesses.
The revised eIDAS regulation, aka eIDAS 2.0 transforms how identity verification works across Europe, covered in our eIDAS 2.0 Deep Dive: The Evolution of European Digital Identity. Rather than organisations and governments building separate verification systems, citizens will be able to present standardised digital credentials from a secure, government-certified wallet. This shift reduces friction for digital users while strengthening security and compliance for businesses.
Citizens will manage government interactions through a single digital identity wallet rather than juggling multiple logins and physical documents. This wallet will store official credentials like driving licenses, passports, and residency certificates, making them instantly available for verification.
During routine interactions with authorities, citizens can present verified credentials directly from their wallet. The system only shares necessary information with explicit consent, maintaining privacy while proving identity.
Students will store educational credentials digitally, enabling seamless transfers between institutions and simplified access to services. Job seekers can share verified qualifications instantly, streamlining applications and reducing document fraud.
The selective disclosure feature allows users to share specific information as needed. A job applicant might share their name and location initially, then provide additional verified details later in the hiring process.
Digital identity wallets will work across financial services, healthcare, travel, and e-commerce. Citizens verify their identity once through their government-issued wallet, then use those credentials across multiple services without repeated verification processes.
Banks face mandatory acceptance requirements by December 2027 where strong customer authentication is required. Early adopters gain competitive advantages through faster customer onboarding and reduced KYC costs. Digital credentials enable instant identity verification, supporting both regulatory compliance and improved customer experience.
Financial institutions can verify customer identity in real-time using government-certified credentials, reducing fraud risk and streamlining loan applications, account opening, and payment authentication.
Very large online platforms with 45+ million monthly EU users (as defined under the Digital Services Act) must accept digital credentials by December 2027 where they require strong customer authentication. This includes platforms like social media networks, e-commerce marketplaces, and search engines that exceed the user threshold.
Insurance providers will offer digital insurance cards through identity wallets, keeping their services front-of-mind for customers. Healthcare providers benefit from secure patient identification and simplified prescription workflows.
Digital health credentials enable secure data sharing between patients and providers while maintaining strict privacy controls. This reduces administrative overhead and allows healthcare professionals to focus on patient care.
Airlines will integrate digital identity verification into booking and check-in processes. Digital passports and travel documents will streamline border control and reduce security queues.
E-commerce platforms above the 45 million monthly user threshold gain reliable age verification and reduced checkout friction. Customers can prove their identity and eligibility instantly without sharing unnecessary personal information.
Digital identity wallets provide stronger fraud protection than physical documents. Government agencies gain access to consistently verified citizen data, reducing processing errors and administrative costs.
The unified approach eliminates data silos between agencies while maintaining citizen privacy through selective disclosure. Citizens control what information they share and with whom.
Counter-Fraud Initiatives: Digital credentials include cryptographic proofs that are nearly impossible to forge, dramatically reducing identity fraud compared to physical documents.
Citizen-Controlled Identity: Unlike traditional systems where governments store citizen data, digital wallets keep credentials with citizens, who control when and how their information is shared.
Cross-Border Interoperability: Citizens can use their digital identity across all EU member states, facilitating travel, work, and service access throughout the union.
Legal Digital Signatures: Digital signatures from identity wallets carry the same legal weight as handwritten signatures, enabling fully digital contract execution and government form submission.
December 2026: EU member states must offer digital identity wallets to citizens
December 2027: Banks and very large online platforms with 45+ million monthly EU users must accept wallet credentials for strong customer authentication
Ongoing: Organisations handling citizen identity must implement verification capabilities
The technical specifications centre around OpenID4VP protocols for remote presentations and ISO/IEC 18013-5 standards for proximity verification. Credentials use SD-JWT (Selective Disclosure JWT) and ISO mdoc formats rather than traditional JSON-LD structures. Early implementation allows businesses to test integration while standards finalise.
Trust service providers face significant penalties for non-compliance: fines of up to EUR 5 million or 1% of global annual turnover, whichever is higher. Member States must ensure penalties are "effective, proportionate and dissuasive" across all aspects of the regulation.
Organisations should begin planning now to meet December 2027 requirements. This involves:
The shift to digital identity represents an opportunity to improve user experience while strengthening security. Organisations that prepare early will be positioned to benefit from faster onboarding, reduced fraud, and improved compliance.
eIDAS 2.0 will transform digital interactions across Europe. Success requires understanding the technical requirements, planning for integration, and preparing staff for the transition.
For organisations ready to implement digital credential verification, the time to start is now. Early preparation ensures smooth integration when government wallets launch.
For detailed guidance on preparing your organisation for eIDAS 2.0 implementation, including technical requirements and compliance strategies, read the final part of our series: eIDAS 2.0 Deep Dive: How You Can Prepare.
Contact Vidos to discuss your eIDAS 2.0 verification requirements and implementation timeline.
