Digital identity wallet Europe – how it works and what comes next
What Europe’s digital identity wallet is designed to solve
Europe is building a digital identity wallet to allow citizens and businesses to verify who they are online without relying on scattered national systems or private identity providers. The goal is simple: give people and companies a single, trusted way to prove identity, share verified information, and access services across borders. The initiative is part of the broader move toward a unified digital identity framework under eIDAS 2.0. The shift reflects the EU’s push for stronger cybersecurity, consistent trust services, and seamless mobility across member states. More background on the EU’s vision can be found through the European Commission’s digital identity initiatives.Why Europe is moving toward wallet-based identity
The wallet addresses several weaknesses in existing identity models:- fragmented national eID systems
- limited cross-border usability
- reliance on private platforms for verification
- difficulty proving specific attributes without oversharing information
How the digital identity wallet works
Issuers, holders, and verifiers
The model follows a simple trust triangle: Issuers provide verified identity credentials. Holders store these credentials in their wallet. Verifiers check authenticity through cryptographic proof.Selective disclosure and data minimization
Users can share only the part of their identity needed for a given service—age, licence validity, company role, or professional certification—without exposing other details.Cross-border recognition
The wallet is being built to work everywhere in the EU. A credential issued in one country must be verifiable in all others, allowing smoother access to banking, government, and private services.
Use cases expected to scale across Europe
Finance and onboarding
Banks will be able to verify customers more efficiently. This supports anti-fraud and AML processes while reducing manual checks.Government services
Citizens will use the wallet for tax records, residence information, vehicle administration, and other national services.Travel and mobility
Driving licences and residence permits can be stored and presented digitally.Business services
Companies will be able to prove legal identity, authorizations of employees, and corporate documentation. The wallet will also connect to the separate European Business Wallet initiative.How decentralized identity fits into Europe’s approach
Digital identity in Europe is shifting away from central databases toward decentralized wallets controlled by the user. This improves privacy and reduces breach risk. Partisia has outlined the role of decentralized identity in a detailed article on its decentralised-identity page.The link between digital identity wallets and major EU projects
Digital Product Passport (DPP)
The wallet will support authentication of companies issuing product passports. This helps regulators confirm reliability of sustainability and supply-chain documentation. Read more on DPP and EUBW.Cross-border compliance
Strong identity assurance will play a key role in future reporting obligations, circular-economy requirements, and industry-specific standards.Challenges Europe still needs to address
Interoperability between member states
Technical alignment is improving, but full standardization is still underway.Security and wallet recovery
Wallets require robust recovery procedures to prevent lockouts or misuse.Adoption
Public awareness, service readiness, and integration by private companies will determine pace of adoption.Guide to the European Business Wallet (EUBW)
The Europe Commission is already taking the necessary steps to realise this strong potential and has made it one of its highest priorities to ensure such business wallets at a European level. In fact, they both made it a flagship action as part of EU’s competitive compass from January 2025 and part of the EU Commission's work program. The motivation for this may be related to the reported 2 trillion euro loss in annual global economic value from lost productivity and revenue opportunities.
What's inside?
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A Technical Solution
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Practical use cases for a Business Wallet
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The European Business Wallet (EUBW)
and more...
Where Partisia contributes to Europe’s digital identity future
Partisia supports wallet ecosystems through secure cryptographic technology that protects identity data during verification and exchange. Its Multi-Party Computation and confidential computing approach aligns with EU privacy requirements and reduces the risk of exposure.- on decentralised identity
- on how EUBW connects identity and the Digital Product Passport
- on Singpass vs MitID
- on sustainability and supply-chain examples such as the coffee use case
Summary – why Europe’s identity wallet matters
The European digital identity wallet represents a major shift toward trusted, privacy-first digital services. It brings consistency across borders, reduces friction for citizens and companies, and lays the foundation for broader digital transformation. The more widely it is adopted, the more value it will create for individuals, businesses, and public institutions.
