Learn how businesses can take advantage of eIDAS 2.0 for digital transformation.

How European Businesses Can Make the Most of eIDAS 2.0

With the rollout of eIDAS 2.0, the European Union is reshaping the landscape for cross-border digital transactions and electronic identification. For businesses, this update offers both opportunities and responsibilities, as it introduces the European Digital Identity Wallet and new standards facilitating trust across all 27 EU Member States.

What is eIDAS 2.0 and Why Should Businesses Care?

eIDAS 2.0 is an upgrade of the original eIDAS Regulation (EU) No 910/2014, expanding its scope beyond public services to a broader range of private sector services. At its core, it mandates that every EU citizen and resident will be offered access to a European Digital Identity Wallet, enabling secure identification and the sharing of verified attributes—such as proof of education, business credentials, or banking information—electronically across borders.

For businesses, this means easier and faster onboarding of customers from any EU country, streamlined processes for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, and the opportunity to integrate trusted digital identity into their digital services. For example, a financial services provider in Germany can accept the digital ID of a customer from Spain without manual document checks, while an e-commerce platform can instantly verify a seller’s credentials issued in another Member State.

Key Benefits for Businesses

• Faster Customer Onboarding: Digital IDs verified at the European level mean customers no longer need to submit paperwork or wait days for approval.
• Cross-Border Expansion: eIDAS 2.0 breaks down borders, allowing businesses to serve customers across the Single Market with minimal compliance adjustments.
• Reduced Fraud and Increased Trust: The new framework harnesses strong authentication methods, making identity theft and account takeover much harder.
• Compliance Made Easier: Built-in features support regulatory requirements such as AML and data minimisation under the GDPR, saving costs on compliance processes.

Practical Examples

Banking and Finance

A fintech based in France can offer accounts to Italian or Dutch clients by leveraging eIDAS-compliant digital IDs for seamless remote KYC. Credit checks and onboarding—all via electronic attestations—are processed in minutes, not weeks.

Online Retail

A pan-European online marketplace can verify the authenticity of sellers’ business registrations instantly, thanks to interoperable digital wallets, reducing fraud and building consumer trust.

Professional Services

Law firms or notaries can accept digital signatures and credentials, allowing clients or partners from other EU countries to sign documents with legal effect recognized EU-wide.

How to Get Started

• Monitor National Wallet Rollouts: Each Member State will launch or designate accredited digital wallets. Businesses should ensure their digital services integrate with these wallets via the European Digital Identity framework.
• Adapt Internal Processes: Review current onboarding, signature, and verification workflows to make the most of digital identity where possible.
• Follow EU Guidance: The European Commission provides technical specifications and up-to-date guidance—see their digital strategy pages and the eIDAS Observatory.

Conclusion

eIDAS 2.0 marks a fundamental shift for businesses across the EU, turning digital identity from a national concern into a cross-border enabler. By recognizing and integrating with the new digital wallets, enterprises can streamline services, expand their reach, and reduce operational challenges. Preparing early and following EU-issued guidelines will put organisations ahead in the digital Single Market.