eIDAS 2.0: An Overview, Its Enhancements, and Future Direction
**Current Status of eIDAS 2.0 and EU Digital Identity Wallet**
The eIDAS 2.0 Regulation, a comprehensive framework for electronic identification and trust services across the European Union, was officially approved by the European Parliament in 2024 and is currently in the process of implementation. The regulation introduces the concept of the European Digital Identity (EUDI) Wallet, a digital identity that will be valid throughout the EU and will have the structure of a "digital wallet" for collecting certificates and verifiable documents.
### Key Features of eIDAS 2.0
All EU member states must provide digital identity wallets by the end of 2026. These wallets will be open-source licensed to ensure transparency and security. The regulation establishes rules for trust services, ensuring that electronic documents and transactions are tamper-proof and legally binding. It also promotes interoperability and standardization of electronic identification and trust services across the EU, facilitating secure and privacy-enhancing technologies.
### Anticipated Innovations
The EUDI Wallet is envisioned as a method for performing Strong Customer Authentication (SCA) for online payments, providing an alternative to proprietary banking apps or SMS codes. Recent antitrust settlements have forced Apple to open its NFC interface on iPhones, allowing third-party wallet apps to offer tap-to-pay solutions, ending Apple Pay's monopoly in the European Economic Area (EEA).
The open-source licensing requirement for the EUDI Wallet aims to ensure transparency and scrutiny of potential security vulnerabilities, protecting user data. The regulation emphasizes the importance of examining privacy and data protection implications given the sensitive nature of information stored digitally.
### Future Developments
The digitalization driven by eIDAS 2.0 is expected to have a significant impact on EU markets, enhancing security and efficiency in digital transactions. As of 2025, only 14 out of 27 EU member states have notified at least one digital identity system to the Commission, and only 59% of European citizens have a digital ID. This new addition aims to promote interoperability between countries and open up a new market in trust services.
The ultimate goal of the eIDAS review is to increase the interoperability and integrability of trust services within the EU, taking a further step towards unifying countries and laying the foundations for creating the European digital market. The role of SPID, the most widely used digital identity system in Italy, in the Digital Wallet is a topic of discussion, as most of the SPIDs currently in use in Italy are limited to level 2 of substantial security, while some European countries require high-level security for access to the wallet.
The eIDAS 2.0 Regulation, with its emphasis on the EU Digital Identity (EUDI) Wallet, is set to revolutionize business and finance in the European Union by streamlining electronic identification and trust services. This open-source digital wallet, anticipated to perform Strong Customer Authentication for online payments, will leverage technology to foster transparency, security, and standardization, potentially disrupting traditional banking methods and expanding the market for trust services.
