EU continues testing digital identity wallets

The European Union (EU) is getting closer to launching its digital identity wallet.

As the European Commission (EC) noted on its website recently, the wallet “will be a safe and easy way for European citizens, residents and businesses to prove who they are when accessing digital services.” allowing them to “receive, store and store safely and securely”. share important digital documents for yourself and electronically sign or seal the documents.”

The wallets, the website noted, will make it easier to secure documents to open a bank account, enroll in school overseas or apply for jobs.

The program follows on from Europe’s Digital Identity Regulation, which came into force in May 2024, and is designed to “enable the digital transformation of the public sector, allowing more services to be accessed digitally, including across borders.” “.

Meanwhile, the EC has been running pilot programs – set to end next year – that explore different use cases for wallets. These include payments, as wallets are designed to provide users with a single way to identify themselves across all your bank accounts and authorize transactions.

The EC’s efforts are taking place at a time when the intertwined future of biometrics and digital identity is beginning to transform paymentsas mentioned here earlier this month.

“As digital wallets gain more and more traction, the security features that drive their use are emerging as components that shape the future of both commerce and authentication,” that report said.

“With the European Union’s eIDAS 2.0 (electronic identification, authentication and trust services) 2026 compliance deadline approaching, leveraging the intersection of digital ID and biometrics to deliver enhanced security, improved user experiences and prevention The biggest scam is at the top of the payments industry. .”

Research from the PYMNTS Intelligence report “Digital Bill Payments: Mobile Wallets Gain Popularity, But Obstacles Remain” found that 60% of consumers used mobile wallets to pay their bills in 2023, up 22% from the year before.

“With the world we live in, digital identities are being used more than physical licenses or physical passports.” ACI worldwide Vice President of Global Fraud Prevention Risk Services Erika Dietrich told PYMNTS in September.

However, for biometric-enabled digital IDs — and the wallets that hold them — to gain widespread acceptance, complex standards that ensure interoperability and trust must be put in place, PYMNTS wrote.

“Biometric authenticationwhile it exists for other aspects of our lives, it’s not a big deal at this stage for payments – but in terms of payments, it’s the future.” Marc Hopkinsvice president in E-Conclusionsaid in an interview here last month.