EU Business Wallet: digital wallet for your business and authority

At a time when Europe is preparing for the long-awaited launch of the European Digital Identity Wallet (EUDIW), businesses and the public sector have another reason to take note – and digital identity is once again at the forefront. The European Commission has presented a proposal for new EU legislation introducing the so-called EU Business Wallet. This is not just ‘another digital wallet’, but a groundbreaking tool which, in combination with the EUDIW, will rewrite established standards and transform the way citizens, businesses and the state communicate. Who is this new initiative aimed at, and what will it bring?

Why is EUDIW not enough?

You may have already heard about EUDIW on several occasions through our Academy or read about it on our blog. So, just to recap – it is a key tool that will enable every European to securely verify their identity, easily access public and private sector services, or sign documents. All this with just a few clicks, completely securely and from anywhere via a single mobile app. So what will the European Business Wallet (EUBW) be used for?

The aim of the legislative proposal[1] is to supplement the European Digital Identity Framework with a market-oriented digital tool designed for the needs of businesses and public institutions. Whilst the EUDIW is intended for natural persons, with private and public entities playing a passive role as so-called relying parties, the EUBW is conceived differently. It places businesses and institutions in the role of active users, providing them with a tool that reflects their specific needs in today’s world – easy and secure communication with the state, representation in legal acts, electronic signing of contracts and a range of other functions – all of this, just like EUDIW, across the entire EU.

Who is the EUBW intended for?

The European Business Wallet is not intended solely for entrepreneurs, as the name might suggest. Any economic operator or public sector body may hold an EUBW. The EUBW will therefore also be issued to public authorities and other entities exercising public authority, including EU bodies and institutions.

The list of economic operators includes not only legal persons (including groups and temporary associations thereof), but also natural persons acting in the course of a commercial or professional activity for purposes related to their trade, business, craft or profession. The definition thus covers commercial companies, as well as self-employed persons and sole traders – as potential users of the EUDIW, they will have a specific status within the ecosystem and will be able to use their EUDIW to access EUBW services.

Unlike the EUDIW, which will be issued only to EU citizens, the EUBW will also be available to economic operators established in third countries outside the EU, provided certain conditions are met.

What will the EUBW be capable of?

The European Business Wallet will enable its owners, in particular, to:

• electronic identification and authentication – the reliable verification of the identity of an economic operator or public institution across borders, linked to a unique identifier (EUID);
• electronic signing and sealing – the use of qualified electronic signatures, seals and time stamps with full legal effect;
• legally binding delivery – the delivery and receipt of electronic documents via an integrated qualified electronic registered delivery service with effect equivalent to physical delivery in person (i.e. similar to data boxes);
• issuing, receiving and proving attributes, and sharing evidence – the use of electronic attestations of attributes, including the sharing of verified evidence via a direct connection to the Once Only Technical System (OOTS);
• management of access rights and authorisations – granting and managing permissions for employees or representatives acting on behalf of the owner, with granular access control and a full audit trail.

Interoperability in the form of secure data and attribute sharing between European Business Wallets, European Digital Identity Wallets and relying parties is also a given.

The principle of equivalence will apply to all core functionalities of the EUBW. Any action taken by the owner via the EUBW will have the same legal effect as if it had been carried out in person, in paper form, or by any other means recognised by law.

When will it come into effect?

The EUBW is currently at the initial legislative proposal stage and must therefore still go through the standard legislative process – approval by the European Parliament and the Council of the EU.

Specific deadlines will come into effect once the Regulation enters into force. Within 24 months, public sector bodies will have to enable economic operators to use EUBW for identification, signing, submitting documents and sending notifications. The actual launch of EUBW on the market can therefore be expected around 2028–2029, depending on the pace of the legislative process and the approach of future EUBW providers. Unlike EUDIW, the implementation of EUBW will not be an obligation for Member States, and the launch of the entire ecosystem will depend on the speed of development and deployment of EUBW by commercial providers.

It should be noted, however, that the introduction of EUBW was already anticipated in the revision[2] of the eIDAS Regulation[3], according to which the identity wallet for legal entities was to be an integral part of the EUDIW ecosystem. It can therefore be expected that both EU legislators and relevant business stakeholders will push for its early introduction.

Why prepare now?

The legislative proposal exists. The direction is clear. And those who see it as an opportunity will be one step ahead.

EUBW is not just another piece of European regulation. It is a fundamental shift in how businesses will interact with customers, business partners and the state in the digital world in the near future.

Companies that start preparing in advance will gain a head start and a competitive advantage over those that will have to make up for a missed start in later stages at a higher cost. Early preparation and reducing the time spent on implementation will free up resources that can be redirected towards innovation and the cross-border expansion of services – this will be the main driver of business growth across the EU with the advent of the single digital identity.

If you’re interested in the EUBW and would like to find out how you can use it in your business, please don’t hesitate to sign up for our upcoming Academy, where we’ll be exploring this topic in more detail. We look forward to seeing you there.