In recent years, the adoption of digital wallets has been on the rise globally, and Europe is no exception. With the main draw of providing both convenience and security, digital wallets have become increasingly popular among European citizens.
Over the past three years, the transaction value of digital and mobile payments in Europe has surged by over 30 per cent. This rise is driven by consumer preference for digital payments, the desire for easier cross-border transactions, and was spurred on by the higher dependency on reduced physical contact during the COVID-19 pandemic.
Therefore, it's no surprise that the EU is looking towards modernising the way that EU citizens manage their digital identities through similar technology – with the European Digital Identity Wallet being a prime example of these initiatives.
The proposed European Digital Identity Wallet, EDIW for short, is a game-changer in digital identity management. It allows EU citizens to manage their personal identification and authentication information all in one place, making it easier for them to authenticate themselves online. The EDIW is secure, user-friendly, and designed to comply with the EU's General Data Protection Regulation (GDPR) and other relevant privacy and security standards.
One of the most significant benefits of the EDIW is its ability to promote cross-border digital activity and economic growth within the EU. By making it easier for startups and digital service providers to access a larger pool of customers, the EDIW could help to spur digital innovation and entrepreneurship within the EU.
Another valid use case, presented by the EU, is that the Wallet is capable of supporting different types of authentications, such as biometric identification and electronic identification, as well as different levels of assurance depending on the sensitivity of the digital service being accessed. This means that the EDIW can support a wide range of digital services, from accessing public information to conducting financial transactions.
The EDIW is far from a brand-new concept. Several countries and regions have already implemented similar digital identity wallet systems. Google, Apple, Samsung have already been spearheading this type of technology, however these are specific to the respective products provided by the provider. As such, they are not always aligned with the security needs of individual countries and specific requirements. The EDIW is therefore poised to have a service that is provided at a national level to meet the needs of the entire population.
The European Commission is currently working on the phased rollout of the EDIW to ensure that it is both secure and user-friendly. While the EDIW is voluntary, it is expected to be widely adopted, with Germany, Greece and Portugal among many countries first to test out this initiative.
In the grand scheme of digital identity management, the EDIW promises to be an indispensable tool not only within the EU but also beyond its borders. As it paves the way for more secure and efficient online interactions, the EDIW stands as a testament to Europe's commitment to embracing the digital future while safeguarding individual privacy and security. In the coming years, we can expect the EDIW to play a pivotal role in shaping the digital landscape and enhancing the online experiences of millions of European citizens.
At Exigy, we have gained over 20 years of experience in digital transformation projects, with a keen focus on innovative identity-based solutions. We are looking forward to sharing our expertise at the upcoming TechXpo, where we shall be participating alongside our digital identity partners, HID. Learn more about our digital transformation approach by visiting us at www.exigy.com.