EU Digital Identity Wallet to launch by 2027, reshaping banking and public services

The European Union is introducing the European Digital Identity Wallet (EUDI) under the eIDAS 2.0 regulation, with an infrastructure expected to be operational by the end of 2026 and available to citizens by 2027. The wallet stores verified digital copies of identity documents, permits users to share only the minimal data required for a transaction, and uses verifiable credentials signed by recognized authorities. It will be usable across a range of services, including banking, health records, employment certificates, public administration, and cross‑border rentals.

In Germany, existing digital ID methods such as video identification and the online ID function of the national ID card will coexist with the new wallet. A 2025 Signicat study reported rising identity‑fraud attempts, prompting regulators to tighten anti‑money‑laundering rules (AMLR) that will apply from July 2027. The German market is urged to adopt interoperable European trust services to protect against fraud while maintaining flexibility in identity verification.

Italy’s implementation notes that large online service providers will be obliged to accept the EUDI Wallet for authentication, making integration a new mandatory requirement for digital onboarding and contract signing. The rollout promises faster, more secure, and privacy‑preserving interactions for both consumers and businesses across the EU.