How the EU Plans to Simplify Cross-Border Business

For decades, European companies—especially small and medium-sized enterprises (SMEs)—have faced a paradox: while the EU promises a single internal market, the reality of doing business across borders often feels anything but seamless. Different national systems, inconsistent digital tools, and redundant paperwork continue to create friction, cost, and delay for businesses trying to expand, comply, or transact across Member States.

Now, the European Commission is taking decisive action with a new initiative: the European Business Wallet (EUBW). This digital tool aims to simplify and secure business interactions with public authorities and other companies across the EU. Think of it as a trusted, standardized, and legally recognized digital identity and communication platform for companies, enabling secure document exchange, regulatory compliance, and proof of authority across borders.

Here’s how this game-changing development is set to work—and why it matters for Europe’s business community.

The Problem: Complexity and Red Tape Still Rule

Despite years of digitalization, companies operating across borders still face major hurdles:

• Fragmented identity systems: Each Member State has its own way of identifying and verifying businesses and their representatives. There's no consistent method to prove “who is this company” or “who has authority to act” in another country.
• Manual and repetitive paperwork: SMEs often must submit the same certificates or licenses multiple times to different authorities—sometimes in paper, sometimes in email, and often without guarantee they’ll be accepted abroad.
• Compliance burden: Businesses spend up to 20% of their staff time on compliance, and the administrative burden hits SMEs hardest. In some cases, compliance costs equal 2.5% of turnover.
• Digital tools not built for organizations: The EU’s existing digital identity tools have focused on individuals. Companies need tailored, professional solutions that handle multi-user access, role-based permissions, and verified credentials.

In short, digital processes haven't kept pace with business needs, particularly for cross-border trade and regulatory interactions.

The Solution: A European Business Wallet

The European Business Wallet Regulation, proposed in November 2025, addresses these challenges head-on. The Wallet is a secure digital application for companies to identify themselves, authenticate transactions, and exchange official documents or attestations across the EU—fully online and with legal effect.

Key Features

1. Secure Identification and Authentication
2. Businesses will use high-assurance electronic IDs (like national eID cards) to securely access their wallet.
3. Only verified representatives (e.g., CEO, compliance officer) will be able to act on behalf of a company—reducing fraud and ensuring accountability.
4. Trusted Communication with Authorities
5. The Wallet will integrate qualified electronic delivery services—a digital equivalent of registered mail.
6. This means filings, applications, and responses sent via the wallet will carry full legal value, with guaranteed receipt and proof of integrity.
7. Cross-Border Credential Exchange
8. Companies will be able to digitally store and send certificates, licenses, and compliance records, all recognized across the EU.
9. No more duplicating documents for each country or worrying whether a local authority will accept them.
10. Digital Mandate Management
11. The wallet will let companies delegate powers digitally (e.g., granting an employee the right to sign or submit a filing).
12. This solves a major gap in cross-border verification of representation.
13. European Digital Directory
14. A central, secure directory will allow businesses and public authorities to find and connect with verified wallet holders across the EU.

Benefits for Businesses and Governments

For Businesses:

• Lower compliance costs: Direct savings estimated at €4,000 per year for microenterprises and over €42,000 for larger SMEs.
• Faster processes: No need to scan, email, or courier paperwork—just send documents through the wallet with full legal validity.
• Trusted relationships: Other companies and authorities can instantly verify your identity, credentials, and authority.
• Simplified market entry: Expanding to another EU country becomes much easier when you don’t need to manually re-submit documentation.

For Public Authorities:

• Streamlined workflows: Digital submission means faster processing and fewer errors.
• Improved security: Strong authentication and audit trails reduce risk of fraud or impersonation.
• Better service delivery: Enables “digital by default” public services—one of the EU’s key Digital Decade goals.

Adoption: What’s Expected and When

The Wallet’s use by businesses will be voluntary, but all public authorities in the EU will be required to accept it for specified transactions after a transition period.

Even with partial adoption, the benefits are significant. If 75% of businesses adopt the wallet, the EU estimates annual savings of €169 billion, with around €155 billion accruing to companies and the rest to public bodies.

The wallet builds on the European Digital Identity (EUDI) framework, using trusted standards and infrastructure already in place. That means quicker rollout and easier integration.

Why This Matters Now

The European Business Wallet isn’t just a nice-to-have. It’s a critical piece of infrastructure for a digital, competitive, and integrated European economy.

As EU institutions, Member States, and companies seek to recover from economic shocks, cut red tape, and embrace digital transformation, the Wallet can deliver:

• Digital sovereignty (by reducing reliance on third-country platforms)
• Sustainability (less paper, fewer couriers)
• Entrepreneurial growth (especially for SMEs and startups going cross-border)

It’s not just about technology; it’s about making the EU Single Market work better for everyone.

Final Thoughts

For companies operating (or hoping to operate) across EU borders, the European Business Wallet will be a powerful new ally. It promises to cut through administrative complexity and make “doing business digitally” more than just a slogan.

As the Regulation moves forward and pilot projects roll out, now is the time for businesses, software providers, and public authorities to prepare. Because once the Wallet arrives, cross-border business will never be the same again; simpler, faster, and more trusted.