EUDI Wallet
The European Digital Identity Wallet (EUDI Wallet), mandated by the eIDAS 2.0 Regulation (EU) 2024/1183, is not merely a compliance requirement but a strategic enabler for innovative players in the financial sector. By 2026, every EU Member State must provide a digital identity wallet to its citizens.
The eIDAS regulation (Article 5f) requires regulated entities, including financial institutions, to support the European Digital Wallet as an authentication method for Know Your Customer (KYC) processes by 24.12.2027. Consequently, all European Member States must provide their citizens with at least one digital wallet, thereby surpassing the current eID schemes available across Europe, such as itsme (Belgium), SPID (Italy), German eID (Germany), BankID, Clave (Spain), and FranceConnect+ / La Poste Digital Identity (France).
Moreover, discussions are ongoing about integrating payment functionality, such as a Digital Euro, into the wallet – further expanding its relevance.
Current challenges
Banks today face rising onboarding costs, fraud risks, and regulatory pressure, while customers demand faster, seamless digital experiences. Balancing compliance, security, and user convenience across diverse EU markets has become a major barrier to growth.
- Onboarding & KYC friction: ID upload, selfies, AML and document checks slow down account opening.
- Payments & Security: Handle payments securely, reducing cart abandonment and fraud risks.
- Cross-border scaling complexity: Each market brings different compliance hurdles for identity verification and lending.
- Competitive pressure: Traditional banks and emerging fintechs are preparing for EUDI integration.
The EUDI Wallet as a catalyst for growth
The arrival of the European Digital Identity Wallet is set to transform the financial sector. For institutions, it promises a chance to reimagine customer onboarding, strengthen trust with secure digital identities, and expand services seamlessly across the EU. It is, without doubt, a catalyst for growth.
But every opportunity comes with its price. Delivering EUDI Wallet services means mastering new technologies, keeping pace with rapidly evolving regulations, and ensuring interoperability across multiple countries. It also means finding and retaining the right people with the rare mix of skills needed to design, operate, and continuously update such critical infrastructure. For many financial institutions, these requirements risk diverting energy and resources away from their true priorities: serving customers, innovating products, and scaling in competitive markets.
This is why the choice of partner is essential. Rather than shouldering the complexity alone, financial institutions can rely on a pan-European group specialized in delivering regulated digital services at scale. A platform such as the Namirial Wallet Platform offers the SDKs, APIs and infrastructure needed to unlock the full EUDI ecosystem – without forcing institutions to build and operate everything from scratch.
In this way, the EUDI Wallet does not become a regulatory burden but a growth accelerator. With the right partner, financial institutions can focus on what matters most, while standing on the shoulders of experts who ensure compliance, reliability, and innovation across Europe.
The introduction of the EUDI Wallet is set to transform several fundamental aspects of the financial sector.
- KYC & Onboarding: Financial institutions can instantly receive verified and tamper-proof identity data, provided directly from government sources. Verify customers anywhere in Europe.
- Strong Customer Authentication (SCA): A credential called “Payment Attestation” cryptographically links transaction details to the authentication process, preventing fraud.
- Verifiable Attribute Attestations (QEAA): Legally recognized digital attestations stored in the EUDI Wallet, confirming specific attributes such as income, address, or professional status. Accepting QEAAs allows financial institutions to verify customer information quickly and reliably for processes like lending or credit scoring. Issuing their own QEAAs (e.g., proof of a verified account) would enable customers to reuse institution-validated data with partner services.
- Qualified Electronic Signature (QES): Enables institutions to rely on QTSPs, using verified credentials to simplify identification for issuing qualified certificates.
EUDI functionality and strategic value
The EUDI Wallet is a powerful enabler for the evolution of financial services. By allowing the storage and verification of a wide range of attributes – from professional qualifications to income – it provides institutions with the foundation to develop new, high-trust products that go beyond traditional offerings. This opens the door for financial institutions to become true hubs, combining identity management with financial services, and simplifying customers’ daily lives through a single, trusted point of access. At the same time, verified attributes enable more personalized services and faster access to products such as micro-lending, mortgages or card issuance, reducing friction for both customers and institutions.
A Consortium-Based Central Hub of Credentials
Today, banks and other financial service providers face a fragmented landscape of identity verification and authentication. Each institution must operate its own KYC and AML systems, develop onboarding procedures, and maintain separate infrastructures for customer verification.
The arrival of the EUDI Wallet does not automatically solve these issues. Instead, it requires institutions to adopt new technologies, standards, and compliance frameworks that demand specialized expertise. Building and maintaining compliant wallet infrastructures is resource intensive.
For most institutions, the real question is not whether to adopt the EUDI Wallet, but how to do so in a way that maximizes value while avoiding the cost and distraction of reinventing the wheel.
Credential hub model
One particularly promising approach for financial institutions is the creation of a consortium-based central hub of credentials.
In this model, multiple banks agree to work together under a shared framework.
Each bank or financial institution integrates a standard SDK into its mobile or web application, effectively transforming it into a compliant EUDI Wallet. From the customer’s perspective, the experience is seamless: the bank’s app becomes their wallet, and their credentials are managed securely in the background.
The critical innovation lies in the shared WSCD backend. Credentials issued by one institution within the consortium are immediately available across others. The impact on customers is immediate: if a person receives credentials from Bank A, those same credentials are instantly available when they log into Bank B’s app. No repeated onboarding, no redundant document checks – just a frictionless experience. Credentials can also be combined, with attributes issued by different parties aggregated into a stronger, more complete identity profile. A customer might combine proof of income from one bank with proof of address from a utility provider, building a stronger identity profile that unlocks access to new products such as credit, mortgages, or insurance.
For financial institutions, the advantages are twofold. First, each bank retains control of its wallet front-end and its relationship with the user, protecting brand value and customer loyalty. Second, the shared infrastructure reduces duplication of effort, spreads certification and security costs across the consortium, and ensures full alignment with the EU’s Architecture Reference Framework (ARF).
The opportunity does not stop at banking. Telecom operators and utility companies could also join such a consortium, broadening the ecosystem and making the same credentials reusable in multiple sectors. The result is a cross-industry hub of digital identity and attributes that radically simplifies interactions for both businesses and consumers.
A new monetization model
The true value of this architecture lies in the ability to create a business model that is not only compliant but also highly scalable and profitable. Instead of competing with individual national wallets, the consortium can position itself as an essential service provider that enables the entire banking ecosystem and beyond.
- Frictionless Onboarding: Users can instantly onboard with any consortium member using credentials already issued elsewhere, dramatically reducing drop-off rates and onboarding costs.
- Credential Reuse: Credentials from banks, telcos, and utilities can be aggregated, enabling richer, multi-issuer trust scenarios (e.g., combining proof of income from a bank with proof of address from a utility).
- User Retention & Brand Autonomy: Each company retains its own wallet app and user base, but benefits from shared infrastructure and interoperability.
- Market Expansion: Simplifies cross-border and cross-sector onboarding, supporting rapid scaling and new product launches.
- Monetizing Verification: The consortium can charge a small fee to “relying parties” (the banks and other businesses that accept the credentials) for each instant, high-assurance verification.
Final considerations
The Namirial Wallet platform is built for interoperability, supporting seamless credential exchange and verification across all consortium members. As the EUDI ecosystem evolves, Namirial’s ongoing investment in technology and compliance ensures partners remain ahead of the curve, ready to adapt to new requirements and opportunities.
The consortium model enables new monetization strategies, from charging for instant verifications to launching bundled cross-sector products. By aggregating credentials from banks, telcos, and utilities, partners can offer customers a single, trusted point of access to a wide range of services. This not only enhances customer experience but also opens the door to innovative business models and partnerships.