diconium Blog

Digital identity in Europe: What eIDAS 2.0 means for companies

Written by Frederik Rathmann | Sep 26, 2025 11:17:13 AM

We monitor the market, authorities, trends and technological developments and classify them for you. As a digital business transformation partner with core competencies in cybersecurity, software engineering, strategy and AI, we continuously check which regulatory requirements not only open up risks but also opportunities for new business models.

A current example: the EUDI Regulation. It originates from the public sector and is initially a regulatory framework. However, a closer look reveals that it can become a strategic competitive advantage for companies if requirements are addressed in good time and potential is consistently exploited.

 

What is the EUDI Regulation?

The European Digital Identity (EUDI) is the EU's legal framework for the introduction of a uniform digital identity across Europe. At its core is the EUDI wallet, a digital wallet for ID data and proof of identity. It is based on the European Digital Identity Regulation, formally Regulation (EU) 2024/1183 amending the eIDAS Regulation (910/2014), which was adopted in April 2024 and is referred to as "eIDAS 2.0".
Its aim is to provide every EU citizen, resident and business with a secure, voluntary and nationally recognized digital identity (eur-lex.europa.eu, ec.europa.eu).
The aim is to make cross-border online services in the public and private sectors more easily accessible, while at the same time allowing users to control their data (eur-lex.europa.eu). The wallet enables proof of identity and attributes, digital signatures and secure data sharing.

 

The technical basis: standards, open source, certification

The eIDAS 2 Regulation stipulates that the wallet must be based on an open, standardized and verifiable architecture:

  1. Open source reference software: the EU Commission provides a reference implementation (source: European Commission, EUDI Wallet).
  2. Uniform standards and interoperability: Technical specifications (APIs, protocols, security mechanisms) are defined by implementing provisions.
  3. Building trust through certification: wallets require EU-wide security certification (Cybersecurity Act) and data protection certification in accordance with the GDPR.

 

What does this mean for companies?

The regulation affects companies in two ways: as users and as providers.

Acceptance obligation:

  • Private companies (except micro and small enterprises < 50 employees and < €10 million annual turnover/balance sheet) that are obliged to use strong user authentication (e.g. in transport, energy, finance, social security, health, telecommunications) must accept the EUDI Wallet as an identification method by the end of 2027 (Art. 5f para. 2, eur-lex.europa.eu).
  • Very large online platforms under the Digital Services Act must support wallet logins if users so wish (Art. 5f para. 3).

Opportunities for the private sector:

  • Less integration effort thanks to EU-wide standards
  • More legal certainty thanks to official certification
  • Lower entry barriers for new providers
  • Transparency and control through open source
  • Standardized user flows

 

Core functionalities of the EUDI wallet

  1. Attribute-based verification

Instead of disclosing complete identities, only individual attributes can be confirmed - such as "is over 18", "has the necessary driving license class" or "is an employee of company XY". This protects the privacy of users and at the same time allows for highly specific, situational offers.

  1. Legally valid digital signatures

With eIDAS 2.0, electronic signatures that are triggered via the EUDI Wallet are legally recognized throughout the EU. This opens up new possibilities for cross-border contracts, digital business transactions and paperless processes, with maximum legal certainty.

  1. Secure data sharing ("verifiable credentials")

Users retain full control over which official documents or private certificates they share and can release these in a targeted and secure manner. For companies, this means faster processes, fewer media disruptions and more trust in the user identity.

  1. EU-wide interoperability

The wallet follows a uniform European standard. This eliminates the need for isolated national solutions and makes it easier to scale services across Europe. Those who get on board early can develop products and services that can be used immediately in all 27 member states.

  1. Self-determination for users

At the heart of the EUDI wallet is the idea that users themselves have control over their data - not states, not corporations. This principle increases acceptance, strengthens trust and creates a new quality in the digital customer relationship: genuine digital self-determination.

The functionalities of the EUDI wallet are not just technical details; they directly change how citizens experience digital services. This is precisely where the leverage for companies lies: The more attractive and trustworthy it becomes for people to use, the greater the acceptance and the broader the application possibilities. This interaction creates new business opportunities, from cost-efficient onboarding to new services that previously failed due to technical restrictions, regulatory requirements or a lack of user trust.

 

Business benefits and practical examples

  • Reduced authentication costs: secure, standardized solution reduces costs per transaction
  • Cybersecurity compliance: Basis for digital handling of sensitive processes.
  • Independence from private providers: Less dependence on third-party providers who could use data for profiling.

 

An example - the seamless payment process

Digital payment processes usually consist of several steps and are often fragmented: Enter login, IBAN or credit card details and confirm TAN or password. Each additional step increases the probability of abandonment and incurs costs.
The EUDI wallet bundles authentication, attribute verification (e.g. proof of age) and payment approval into a single process. Companies can then market this as a journey as "1-Click EU-ID Check and Pay".

Citizens experience a simple and secure payment process, while companies increase conversion, reduce abandonment rates and lower process costs. This creates a clear competitive advantage from a regulatory framework.

 

How we can provide support

As a digital business transformation partner with core competencies in cybersecurity, software engineering, strategy and AI, we help companies to not only implement EUDI, but to use it strategically.

We support you from the assessment of opportunities, obligations and strategic options, through the implementation of pilot applications and their integration into existing systems, to the development of customized wallet services or identity solutions.

In other words: we build your competitive advantage - secure, compliant and future-proof.