THE EU’S DIGITAL WALLET, LAUNCHING BY 2026, WILL FOSTER CROSS-BORDER DIGITAL SERVICES, ENHANCE USER PROTECTION, AND ENABLE ORGANIZATIONAL CREDENTIALS FOR AML AND KYC MANAGEMENT ACROSS THE SINGLE MARKET.
Two primary models for Digital Wallets are identified. The first is the EU Digital Identity Wallet, which operates within the regulatory domain. It is primarily for officially issued credentials such as passport, driving licence, etc., and requires High-Assurance only. This model is supported by the eIDAS 2.0 (EU) Regulation 2024/1183. The second model is the Open Model, which operates within the contractual domain. It is aimed at B-C flexibility (Business-to-Consumer interactions) and assurance is dependent on pre-agreed terms and conditions (Rules of the Game). This model may involve potentially complex workflows.
The EU is taking a proactive and leading role in the widespread adoption of Digital Wallets. The rollout timeline indicates that the EU will introduce the Digital Wallet by 2026, making it freely available to everyone. The delivery mechanism could be by public and/or private sectors depending on Member State, allowing for national flexibility. In conjunction with the Digital Services Act (DSA), Digital Wallets will contribute to a common set of rules on intermediaries’ obligations and accountability across the single market that will open up new opportunities to provide digital services across borders, while ensuring a high level of protection to all users, no matter where they live in the EU. This will foster cross-border digital services and enhance user protection. The utility of Digital Wallets extends beyond individuals. AML (Anti-Money Laundering) and KYC (Know Your Customer) credentials could be drivers for organisational Digital Wallets as well as individuals, indicating their potential for managing verified information for corporate entities.
The overarching benefits of Digital Wallets are centred on efficiency, ease, and security. The primary benefit is summarised as being easier, faster, safer and more efficient. Digital Wallets will make life more efficient and easier by streamlining various interactions and services, ultimately improving the efficiency of daily interactions.
Digital Wallets are a transformative technology, set to revolutionise how individuals and organisations manage their identities and conduct transactions in the digital realm. With strong regulatory support from the EU and a focus on security, privacy, and user control, they are positioned to become a cornerstone of the digital single market by the end of 2027, when all regulated entities in the EU will be required to accept Digital Wallets in law. The shift towards Digital Wallets promises a future of easier, faster, safer and more efficient digital interactions for all users.
As we stand on the brink of this digital revolution, it is clear that Digital Wallets will play a pivotal role in shaping the future of secure and efficient transactions. By embracing this technology, we are not only enhancing our daily interactions but also paving the way for a more connected and protected digital society.
Jon Shamah E:
jshamah@ejconsultants.eu T: +44(0) 7813 111290
15 | ADMISI - The Ghost In The Machine | Q4 Edition 2025
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