Impact of the New European Digital Identity Framework on the Electronic Transactions and Services

A broader identification framework and new trust services

all private services (excluding SMEs and very small businesses) that are regulated and/or require strong authentication of the user as part of a contractual obligation will also have to be able to accept the use of European digital wallets. The regulation specifically mentions the transport, energy, banking, financial services, social security, health, drinking water, postal services, education, telecommunications and digital infrastructure sectors. As we know, this obligation also applies to the major digital platforms covered by the legislation [3] on digital services

The digital wallet at the heart of the regulation

The flagship measure in the new regulation is known as the “European digital identity wallet”, which makes it possible to use all available forms of trust granularity on a mobile phone: documents or credentials, certified data or authentication and signature processes through a common interface.

Users will be able to obtain and present electronic documents, credentials and digital attestations using their digital wallet. Diplomas, driving licences or medical prescriptions, for example. The wallet can also be used to transmit personal identification data during authentication or identification processes, or data subject to verification or attestation processes.

An expected global impact and movement towards convergence

As the first major continental/regional legislation on the introduction of digital wallets, the new European regulation will have a wider direct impact and is part of a global movement towards convergence in the digitisation of digital transactions and services.It is a sign of a more structured digital space. By offering users versatile, ergonomic and appropriately secure tools like the digital wallet, it aims to advance the practical aspects of the digital economy in three different ways. The first is the management and protection of sensitive data, in particular regarding identification; the second is the ability to carry out private, public and cross-border electronic transactions more conveniently; and the third is access to digital services that are more customisable according to the attributes exchanged.

[1] EU Regulation No 910/2014 of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC

[2] EU Regulation No 2024/1183 of 11 April 2024 amending Regulation (EU) No 910/2014 as regards establishing the European Digital Identity Framework

[3] EU Regulation 2022-2065 of 19 October 2022 on a single market for digital services.

Written by Guy DE FELCOURT, Public Affairs Consultant Digital Society & Identity focus - Author and University Lecturer.