The wallet will allow users to “safely obtain, store and share important digital documents about yourself and electronically sign or seal documents,” according to a recent announcement made by the European Commission (EC) on its website. It “will provide a secure and user-friendly method for European citizens, residents, and businesses to verify their identities when utilizing digital services.”
According to the website, the wallets will make it simpler to securely submit documentation while applying for employment, opening bank accounts, or enrolling in foreign schools.
The initiative aims to “facilitate the digital transformation of the public sector, enabling greater access to digital services, including those available across borders.” This effort aligns with the European Union’s Digital Identity Regulation, which went into effect in May 2024.
Meanwhile, the EC has been studying the different applications for the wallets through pilot programs, which are scheduled to conclude next year. Since the wallets are made to give users a single method of identifying themselves to all of your bank accounts and authorizing transactions, these include payments.
The EC is working at a time when payments are starting to change due to the interwoven future of digital identification and biometrics, as we mentioned earlier this month.
According to the study, “the evolving security features that drive the adoption of digital wallets are becoming pivotal elements influencing the future of both commerce and authentication.”
“The payments industry is highly aware of the importance of leveraging the convergence of digital ID and biometrics to offer increased security, better user experiences, and increased fraud prevention, particularly in light of the eIDAS 2.0 (electronic identification, authentication, and trust services) regulation 2026.
PYMNTS Intelligence’s report, “Digital Bill Payments: Mobile Wallets Gain Popularity, but Hurdles Remain,” revealed that in 2023, 60% of consumers paid their bills using mobile wallets, a 22% increase from the previous year.
In September, Erika Dietrich, vice president of ACI Worldwide Global Fraud Prevention Risk Services, told PYMNTS, “Digital identities are becoming more used than physical driver’s licenses or physical passports with the world that we live in.”
As per PYMNTS, however, in order for digital IDs with biometric capabilities and the wallets that house them to become widely used, sophisticated standards that guarantee trust and interoperability must be created.
According to Marc Hopkins, vice president of E-Complish, biometric authentication is the way of the future for payments, even though it is already used for other aspects of our lives. Hopkins made this statement in an interview held here earlier this month.