EUDI Wallets: Your Guide to Europe's Digital Identity Future

Key takeaways

• Mandatory acceptance for businesses: Regulated sectors serving EU clients must be ready to mandatorily accept the EUDI Wallet for digital identity verification and authentication by November 2027.

• A new standard for cross-border KYC: The EUDI Wallet is setting a new standard for cross-border KYC, offering a unified, secure platform for verified credentials that will dramatically cut operational costs and virtually eliminate compliance friction for organisations, transforming today's costly, multi-step KYC/AML processes into streamlined, instant digital transactions across Europe.

• The future is user-controlled identity: Based on the eIDAS 2.0 regulation, the EUDI Wallet uses "selective disclosure," allowing users to prove attributes (like being over 18) without revealing full personal data, significantly enhancing privacy and security for all digital workflows.

The European Union Digital Identity (EUDI) Wallet represents a significant shift in how digital identity verification and authentication will work across Europe, with implications extending to UK businesses operating in cross-border markets. While the UK charts its own digital identity course post-Brexit, the EUDI Wallet's planned government rollout by September 2026 will influence how British organisations handle identity verification for EU customers and partners.

This guide is designed to help UK businesses navigate this new landscape and understand the imperative for a dual digital identity strategy.

The EU has set an ambitious target for 80% of citizens to adopt EUDI wallets by 2030, creating a unified digital identity ecosystem across member states. This creates both opportunities and compliance considerations for UK businesses.

What is EUDI Wallet?

Based on  the eIDAS 2.0 regulation

The eIDAS 2.0 regulation builds upon the original 2014 framework. This updated regulation, formally adopted in March 2024, mandates that all EU countries provide citizens with European Digital Identity Wallets by the end of 2026.

EU digital identity goals for 2030

The EU has set an ambitious target for 80% of citizens to adopt EUDI wallets by 2030, creating a unified digital identity ecosystem across member states and  impacting cross-border transactions for UK businesses.

Large Scale Pilot Projects across 26 member states are currently testing real-world applications, from mobile driving licences (MDL) to healthcare credentials. These pilots involve over 350 companies and government agencies.

Core functionality and digital credentials storage

EUDI Wallets function as secure mobile applications that store and manage verified digital credentials. Users can house various verified documents within a single ‘wallet’, from driving licences and educational certificates to professional qualifications.

The wallet's architecture supports selective data sharing, allowing users to prove specific attributes without revealing unnecessary personal information (e.g., proving they are over 18 without showing their full date of birth).

Other core functionalities are:

• Secure storage using Public Key Infrastructure (PKI) ensures cryptographically signed credentials

• Cross-border compatibility through standardised technical specifications

• User control over which data gets shared with which service providers

 A deeper look: Strong Authentication & Qualified Electronic Signatures

The EUDI Wallet is designed to provide a new standard for strong authentication and support legally binding signatures, directly addressing two critical business needs. 

Current EUDI Wallet authentication relies on multi-factor verification combining biometric data, device-based security, and cryptographic signatures. Docusign is actively testing these protocols, integrating Person Identification Data (PID) verification with its existing identity verification capabilities across 35+ countries.

The authentication process requires users to present verified credentials from their wallet, which relying parties can validate. While the EUDI wallet’s selective disclosure feature allows for validation without sharing a photo of an ID, businesses will have the ability to save the verified credentials for audit purposes. . This approach reduces fraud risk while giving users control over shared information. By 2027, UK businesses serving EU markets will need to accept these authentication methods for regulated sectors such as public services, banking, financial services, telecommunications, energy, healthcare, transport, and education requiring Strong Customer Authentication (SCA) must accept the EUDI Wallet for authentication alongside their existing solutions.

The wallet is meant to transform electronic signatures and digital agreements. By default, and free of charge, the EUDI wallet will offer users the ability to sign documents with Qualified Electronic Signatures (QES), which have the same legal standing as a handwritten signature. The wallet’s ability to facilitate QES ensures full legal validity while dramatically reducing signing time.

Key benefits of EUDI wallets for businesses and citizens

Enhanced security and privacy protection

The wallet's use of multi-layered security and selective disclosure reduces data breach risks for businesses and protects user privacy.

Streamlined cross-border digital transactions

The wallet provides a consistent and trusted method for verifying identities across all EU member states, streamlining international business and reducing friction stemming from different interpretations and local regulation across member states.

Simplified compliance with EU regulations

Anti-Money Laundering (AML) and Know Your Customer (KYC) obligations become seamless processes when customers authenticate through verified wallet credentials.

Due to standardisation, Wallet-based identity verification satisfies regulatory requirements across multiple jurisdictions simultaneously. The cost reduction benefits include eliminating traditional certification fees for Qualified Electronic Signatures and streamlining audit processes.

Current implementation status across EU member states

UK market preparation and considerations

UK organisations with European operations are actively monitoring EUDI Wallet developments to ensure cross-border compatibility, focusing on the mandatory acceptance deadline of November 2027.

UK businesses must also consider a separate but equally important development: the new UK Digital ID Scheme. For domestic operations, businesses must also prepare to adopt the UK’s new digital ID Scheme for services like Right To Work checks. 

Implementation challenges and timeline to 2026

Technical hurdles and significant gaps remain for the December 2026 deadline for EU Governments deploying the wallet software. Cross-border interoperability presents the most complex challenge. Regulatory uncertainty around key compliance questions persists, and with implementing acts still under development, organisations face the challenge of preparing integration strategies without complete technical specifications.

The aggressive timeline means no production-ready EUDI Wallets exist today, forcing parallel development across technical standards, certification frameworks, and business integration processes.

How Docusign is preparing for the EUDI wallet ecosystem

Docusign’s goal is to make compliance and integration simple. Through one connection, organisations can meet eIDAS 2.0 requirements and access all EUDI Wallets, as well as other identity methods needed for participants to verify themselves and sign securely. This unified approach removes the need to manage multiple integrations and gives businesses full flexibility to choose which identification methods to offer — a key advantage in the market.

Pilot programmes and prototype development

Docusign is actively collaborating with Animo through the German SPRIND challenge, developing prototype solutions that demonstrate how EUDI Wallet authentication can integrate  with electronic signature workflows. Our trials focus on understanding user experience challenges and technical requirements for UK organisations serving EU customers so that they can be addressed ahead of the deadline.

European government agencies are participating  in our pilot to validate how wallet authentication will satisfy regulatory requirements, providing concrete insights into how Qualified Electronic Signatures will work through wallet-based identity verification.

Trust service provider integrations

Docusign already has an established network of  strategic partnerships with most Qualified Trust Service Providers across Europe (like D-Trust, A-Trust, and SwissCom) to aggregate wallet access, and is continuing to expand that network. This puts it in a strong position to integrate all 27+ EUDI Wallets through a single platform, eliminating the complexity of managing multiple trust service relationships for UK businesses.

Identity verification workflows currently being tested demonstrate how wallet-based authentication will enhance, not replace, existing signature processes, streamlining the identity verification step.

Integration with existing digital services

The eIDAS Regulation requires standardised APIs and protocols that allow EUDI Wallets to communicate seamlessly with existing business systems. Docusign is testing these pathways, focusing on how wallet-based identity verification connects with its current eSignature, and CLM, and overall Intelligent Agreement Management (IAM) platform.

Preparing your organisation for EUDI wallet adoption

Integration planning and system readiness

UK organisations should evaluate current identity verification methods and assess existing API infrastructure and customer onboarding systems for compatibility with wallet-based authentication protocols.

Docusign's pilot partnerships offer early access to testing environments to help organisations identify technical gaps. The compressed timeline requires parallel preparation across technical integration, staff training, and process redesign.

Staff training and change management

Successful EUDI Wallet adoption requires comprehensive staff training. Customer service representatives need training on wallet authentication workflows, and compliance teams require updates on regulatory requirements. Change management strategies focusing on gradual skill development prove most effective, ensuring business continuity during the transition period.

Compliance preparation strategies

UK businesses must identify whether they operate in regulated industries that face compulsory wallet integration by November 2027. Compliance preparation focuses on three core areas: GDPR alignment, technical certification readiness, and audit trail maintenance.

Forward-thinking organisations participate in pilot programmes to understand practical compliance requirements before they become mandatory for cross-border operations.

The future of digital identity with EUDI wallets

Expected adoption rates and user experience

ABI Research forecasts 169 million digital ID wallets in circulation by 2026. However, the 80% citizen adoption target by 2030 faces realistic challenges. User experience testing through pilots reveals that streamlined onboarding processes significantly impact user acceptance, while complex setup procedures create high abandonment rates. 

For our customers, this translates to a clear priority: identity solutions must be fast, easy, and frictionless to secure high transaction completion rates.

Positioning your business for instant, legally binding agreements

The EUDI wallet is a transformative technology that will fundamentally change how businesses and consumers interact in the digital realm. It is not an isolated development but part of a global trend toward user-controlled, portable digital identities, as evidenced by the new UK digital ID scheme. 

The EUDI wallet integrated in Docusign's platform will deliver critical value: 

• Zero-Friction Compliance & Speed:  The EUDI Wallet allows your agreement workflow to instantly verify identity attributes directly from the Wallet's trusted, government-backed data. This transforms today's costly, multi-step identity checks into streamlined, instant digital transactions, drastically cutting operational costs and ensuring the agreement process never stalls.

• The Highest Legal Certainty (QES): The Wallet’s support for strong authentication and the ability to provision Qualified Electronic Signatures (QES) represents the highest level of legal assurance. This is paramount for securing critical agreements and ensuring their enforceability across borders.

• Inclusive Transition & Hybrid Support: We understand that full digital ID adoption takes time. Our platform ensures a smooth transition by providing robust, legally compliant methods for identity verification and signing for individuals who may not yet possess a digital wallet or ID, guaranteeing your agreement workflows remain inclusive and uninterrupted.

• Future-Proofing Your Agreements: By choosing an agreement platform that actively aligns with both the EUDI and global identity schemes (like the UK’s), you ensure that your business maintains the highest standards of security, legal compliance, and a superior digital agreement experience.

The EUDI Wallet is the future source of trusted identity that will feed directly into your most critical agreement workflows. Planning now to seamlessly integrate this trusted, portable identity layer, while maintaining support for existing methods, is key to delivering a best-in-class, legally sound, and customer-friendly digital agreement experience.