The European Commission believes a single digital gateway could save Europeans up to 855,000 hours of their time annually and companies more than EUR 11 billion per year.
An online economy that is secure and competitive relies heavily on digital identity as a major component of data sovereignty. Authentication, authorization, transacting, and even paying all rely on an organisation’s identity layer.
Digital identity verification is no longer a “nice to have,” but rather a statutory obligation in many industries, starting with the banking sector.
The problem is that these “digital” ID checks don’t always function across borders, often take a long time, and even need paper verification such as a passport, proof of residence, or driver’s licence, necessitating a face-to-face encounter. The European Commission Project is trying to create a single digital identifying system for Europe, which is the goal of the European Digital Identity Wallet. Digitally storing personal data and documents in an app that can be utilised in any EU member state is now possible.
Only their ID or driving licence may be stored in an app, but the European Identity Wallet will enable European residents to securely save their medical data or bank cards or even their university degree titles. As a result of this, EU citizens will be able to easily identify themselves and any other EU citizens.
The European digital identity mobile ID wallet framework:
As part of the new regulation, member states will give people and enterprises digital wallets that may be linked with other personal qualities (e.g. driving licence, diplomas, and bank account). Private companies or government agencies may offer these wallets, as long as they have been approved by a Member State.
It is hoped that the new European Digital Identity wallets would let all Europeans access online services without having to utilise private identifying techniques or provide personal information. These people will have complete control over the information that they disclose.
The Digital Identity of Europe will be:
- Available to anyone who wants to use it: Anyone that is a EU citizen, resident, and/or business owner can use the European Digital Identity.
- Widely usable: In order to get access to both public and private digital services within the EU, European Digital Identity wallets will be widely used as a means of identifying people and proving certain personal traits.
- Manage of personal data by users: The European Digital Identity wallets allow users to control and monitor the information about their identity, data, and certificates that are shared with other parties. Users have control over what information is shared, ensuring that only relevant information is available.
Key principle of digital identity wallet
- EU citizens, residents, and businesses may all access it if they so want.
- An EU-wide method of identification or verification of specific personal characteristics for access to public and private digital services
- Controlling the exchange of personal information, data, and certifications with third parties and keeping track of it
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How does a digital identity mobile Id wallet work?
The worldwide epidemic induced by Covid-19 has boosted digitization procedures for both enterprises and public agencies in entire Europe. Private firms, notably in the financial sector, have been obliged to relocate their services online not to lose consumers and commercial possibilities, since owing to the limitations placed in place because of the epidemic, they could not utilise services on site. This is only one of the instances of how a secure and safe digital identity that satisfies European rules, such as eIDAS and AML, may be employed.
This European digital wallet will enable people to do procedures like enrolling in a European institution, apply for a scholarship, purchase medications and any other official process that needs an identity verification, in any of the 27 EU member nations.
Only 60% of the EU population in 14 Member States are able to use their national eID cross-border.
According to the European Commission less than one-fourth of the most important public service providers in all EU member states enable users to establish their identity online without using a password via the use of an e-Identity system. The annual success rate of cross-border authentication is still rather low, but it is rising.
What does Europe’s Digital Identity Wallet have in store for the future?
Because it isn’t a payment system, the wallet will have a significant impact on internet commerce. Think about how many of your most essential transactions depend on ID verification, from buying plane tickets to enrolling in university courses to applying for a bank loan. With the digital wallet, all of these procedures will be streamlined, simplified, and made more secure.
Similarly to how Asian mega apps like Grab in Singapore and WeChat in China began with basic applications and grew their services, entrepreneurs may build their operations in Europe as well. As more people use a globally recognized digital wallet, e-commerce and online firms will be able to provide more finance services.
You may also be interested in: 5 Benefits of using Mobile ID Wallets and use-cases.
Government services will be simpler to obtain and more comfortable to use thanks to the European Digital Identity Wallet, while the details are still being worked out. This will also open up several new commercial possibilities within the European Union.
Last but not least…
The EU Commission released a proposal of the European identity digital wallet laws and a strategy for a European digital identity wallet standard. Creating a European and most crucially interoperable ecosystem is the objective.
This new digital wallet is designed to let Europeans not only identify and verify themselves online, but also store and access other personal information, such as driver’s licences and tax records, digitally. Consequently, digital identity wallets might be a catalyst for the digitization of several businesses.
Digital ID Wallets must be inclusive and universal in access in order to meet the goals of the EC and other public stakeholders. If you want to know more how Build38 can help your ID Wallet to meet the demanding security requirements while being able to run on every smartphone, all of that having the shortest time to market, get in touch with us.