Digital wallets, also known as e-wallets, are no longer just tools for making payments via smartphone. Today, they allow users to store payment cards, transit tickets, loyalty cards, or mobile documents. But this is only the beginning.

Soon, the EUDI Wallet — the European Digital Identity Wallet — will appear on our smartphones. It will enable secure login, data sharing, and access to both public and private services throughout the Union. Thanks to this, digital identity will become not only practical but also secure, and cross-border services within the EU will be easier to use than ever before.

History and Legal Context of Digital Wallets in the EU

The European Union has been developing the concept of digital identity for its citizens for years. The first step was the introduction of the eIDAS Regulation in 2014, which established a legal framework for trusted electronic services and digital signatures. Now, a new version — eIDAS 2.0 — is being prepared, introducing, among other things, an interoperable European digital identity wallet: the EUDI Wallet.

The EU’s goal is to create a trusted, secure, and universally available tool, as opposed to commercial wallets, which are based on private platforms.

Types of Digital Wallets

Digital wallets, which are applications or services that allow storing data needed for payments and authentication, are divided into three main categories:

1. Commercial wallets – e.g., Apple Wallet, Google Wallet. Primarily store cards and enable mobile payments.
2. Banking and fintech wallets – applications created by banks or startups, offering additional financial features such as spending analysis, micropayments, or automated savings.
3. Regulated wallets – developed and supervised by public institutions. The most important project in this category is the EUDI Wallet, which will be available to every EU citizen and meet strict security requirements.

How the EUDI Wallet Works

A typical e-wallet allows you to add a bank card or ticket and make payments. The European Digital Identity Wallet goes a step further, combining payment functions with digital identity.

Key features:

• Person Identification Data (PID) – basic identity data, e.g., name, surname, nationality.
• Electronic Attestations of Attributes (EAA) – digital attestations such as diplomas, professional qualifications, driving licences.
• Offline mode – e.g., confirming a driving licence during a roadside check, based on the ISO/IEC 18013-5 standard.
• Online mode – EU-wide interoperability through OIDC4VC (OpenID for Verifiable Credentials) protocols.

Data in the EUDI Wallet is issued by trusted public institutions and must comply with EU security standards.

Security and Privacy in the EUDI Wallet

Security and data protection are the foundation of the EUDI Wallet project. The wallet complies with strict GDPR requirements, privacy by design principles, and standards set out in the European Digital Identity Framework.

Data Encryption and Authentication

• Data encryption – all user data is protected using advanced cryptographic methods.
• Multi-factor authentication – security mechanisms prevent secret cryptographic keys from being exported outside the wallet. Data exchange takes place in compliance with cybersecurity requirements.

Data Minimisation and Control

• Only necessary data – the wallet is designed to collect and share only the data strictly necessary to perform a service.
• Selective disclosure – the user can disclose only the specific information required by the service provider, without revealing additional data that could enable profiling.
• Zero-knowledge proofs – allow verification of an attribute (e.g., having sufficient funds above a certain threshold) without revealing details, ensuring maximum privacy.

Privacy and No Tracking

• No tracking or profiling – digital document providers cannot combine your data with third-party data. Data minimisation further prevents profiling.
• Unobservability – user actions remain completely private and invisible online. No information is collected about wallet use or digital documents.

Privacy Dashboard

Every EUDI Wallet has a built-in privacy dashboard that allows users to:

• check who has received which data,
• request deletion of data by service providers,
• report misuse or improper data handling.

Users can also download their data from the wallet at any time, retaining full control.

Certification and Audits

• Each EUDI Wallet is certified by EU Member States to meet security and privacy requirements.
• Digital document providers (Qualified Electronic Attestations of Attributes) are audited every two years to ensure effective security measures.
• Service providers using wallet data must register their activities, declare how data will be used, and carry out Data Protection Impact Assessments (DPIA).

Additional Safeguards

• Ability to suspend the wallet in case of security issues.
• Testing in controlled environments with researchers, startups, and stakeholders to improve performance while complying with EU law.
• Public statistics on security incidents and data breaches.
• Open source software – the wallet code is public, ensuring transparency in its operation and use of data.

Thanks to these measures, the EUDI Wallet guarantees the highest level of security and privacy while enabling convenient and universal access to digital services across the European Union.

Benefits of the EUDI Wallet

According to the European Commission, the European Digital Identity Wallet will bring numerous benefits to citizens and businesses:

What do citizens gain?

1. Easy access to public and private services – opening a bank account, applying for university, or getting a job becomes simpler and faster. The EUDI Wallet enables identity verification or document sharing (e.g., a diploma) with a single click, reducing time and administrative burden.
2. Data protection – the user controls what information is shared and only reveals necessary data. For example, confirming age without disclosing date of birth, or proving the validity of a driving licence without revealing address. Selective disclosure significantly reduces profiling risks.
3. Anonymous identification – in selected situations, it will be possible to confirm identity completely anonymously, increasing privacy and security.

Benefits for public administrations

1. Enhanced security – wallets are certified for cybersecurity and tested across Europe, ensuring secure data exchange in every process.
2. Simplified access to digital services – every EU citizen will have access to electronic identification, allowing the expansion of digital public services and wider adoption of the wallet.
3. Stronger fraud prevention – secure and private digital identification makes identity theft and impersonation more difficult.

Benefits for private companies

1. Reduced identity verification costs – the wallet provides a safe and reliable method of user authentication across the EU, lowering verification costs and enabling more online transactions.
2. Compliance with cybersecurity requirements – high levels of security enable sensitive operations to be performed entirely digitally, creating new business opportunities.
3. Neutral public solution – the wallet acts as an independent authentication solution, eliminating the need for private providers who might use user data for profiling.

Practical Uses of the EUDI Wallet

The EUDI Wallet goes beyond payments. Its main purpose is digital identity. Examples include:

• E-government services – confirming identity on public portals to securely access services and registers in every EU Member State.
• Opening bank accounts – verifying identity to easily open a bank account in any EU country.
• e-SIM registration – enabling activation of e-SIM cards across the Union.
• Mobile driving licence – confirming identity and driving rights, making it possible to rent a car anywhere in the EU.
• Qualified electronic signature – signing qualified electronic signatures recognised in all EU countries.
• E-prescriptions – verifying identity to collect medicines in any EU Member State.
• Logging in to online services and signing documents – secure access to both public and private platforms, with legally valid electronic signatures.
• Sharing certificates and qualifications – such as educational diplomas or professional credentials.

Comparison: Digital Wallet vs. EUDI Wallet

Most users are already familiar with solutions like Apple Wallet or Google Pay, so it’s easy to compare them with the upcoming EUDI Wallet. Commercial wallets primarily focus on storing payment cards, tickets, and loyalty cards. Their security is based on private platforms that use their own, varied data protection standards. These solutions are available globally but remain dependent on commercial ecosystems created by tech companies.

The EUDI Wallet goes much further. In addition to payment functions, it enables the storage of digital identity and public documents, such as driving licences or professional qualifications. Created and regulated by the European Union, it relies on open standards and ensures a high level of security, in compliance with EU regulations. Moreover, it guarantees full interoperability across the EU — it will work both in public services and on the largest digital platforms (VLOPs), making it a strategic digital infrastructure, not just a convenient addition to payments.

The Future of the EUDI Wallet – Potential and Possible Use Cases

The EUDI Wallet has enormous potential, which in the future may be applied in many areas of daily and digital life:

1. Smart cities – quick access to city services, public transport, or traffic management systems, making urban infrastructure easier to use.
2. E-health – potentially enabling secure access to medical history, prescriptions, and test results across the EU, supporting cross-border treatment and healthcare coordination.
3. Metaverse and other virtual environments – in the future, the wallet could enable secure identification in virtual worlds, authorisation, and access to virtual services and resources.
4. Global interoperability – potential compatibility with digital wallets outside the EU, facilitating cross-border travel, online shopping, and access to international services.
5. Payments and microtransactions in digital ecosystems – use of the wallet for payments in e-services, tickets, subscriptions, or in-app micropayments for public and private services.
6. Integration with online education – storing diplomas, certificates, and educational achievements in a verifiable format, easily shareable with institutions across the EU.
7. Automation of administrative processes – in the future, the wallet could simplify automatic form-filling, applications, and data verification with public administrations.
8. Secure storage and sharing of professional data – such as professional licences, training certificates, qualifications, and permits required in different EU countries.

These examples illustrate the potential development paths of the EUDI Wallet and its ability to support the everyday life of citizens, public administrations, and the private sector across Europe.

Summary

Digital wallets today are much more than convenient smartphone payments. With the arrival of the EUDI Wallet, they will become the cornerstone of modern identity in Europe, combining security, privacy, and convenience. It is not just an everyday tool, but a strategic EU digital infrastructure, enabling citizens and businesses to easily access public and private services across the region.

If you would like to learn more about implementing the EUDI Wallet in your organisation or need support with digital identity integration, contact us. Our experts will help you understand all technical, regulatory, and security aspects and guide you towards the best solutions tailored to your needs.