Unveiling New Digital Identity Use Cases for European Businesses

Unlock the full potential of digital identity for your business. This blog explores fresh, actionable use cases for the EU Digital Identity Wallet in today's European landscape.

Digital identity is quickly becoming the backbone of Europe’s digital transformation. The EU Digital Identity Wallet offers an unprecedented, secure, and privacy-respecting tool for individuals, businesses, and public authorities. But beyond general overviews and sector-focused examples, many European businesses still wonder: What new and underutilized use cases can profoundly change our day-to-day operations, efficiency, and compliance?

The Expanding Landscape of Digital Identity Use Cases

With the European Digital Identity Wallet framework driven by eIDAS 2.0, businesses access a unified, cross-border digital identity system that reshapes traditional processes. Crucially, this solution prioritizes user consent, privacy, and interoperability, as outlined by the EU Digital Identity Architecture and Reference Framework, ensuring that business adoption is seamless and legally sound.

Across Europe, the adoption pace is accelerating. According to Eurostat’s 2023 Digital Economy and Society report, 68% of EU enterprises had already adopted some form of electronic identification or authentication mechanism—demonstrating readiness for the next step: integrating the EU Digital Identity Wallet for advanced business operations.

Unexplored Use Cases for the EU Digital Identity Wallet in Business

While many are aware of high-level use cases—like onboarding clients or supporting e-signatures—numerous promising opportunities remain underutilized. Below are emergent use cases that European businesses should explore:

1. Automated Vendor Due Diligence & Supply Chain Audits

• Scenario: When onboarding new suppliers, verifying business credentials (e.g., VAT status, ESG compliance, company directors) is both necessary and time-consuming.
• How the Wallet Helps: The Business Wallet allows vendors to share authenticated, up-to-date attestations issued by qualified authorities, reducing manual verification and fraud risk.
• EU Compliance Angle: The eIDAS 2.0 legal framework guarantees the legal equivalence of digital and paper attestations, streamlining procurement and compliance audits.

2. Simplified KYC Across Multiple Jurisdictions

• Scenario: Cross-border transactions—especially in finance and e-commerce—require complex, repetitive Know-Your-Customer (KYC) processes.
• How the Wallet Helps: With interoperable digital credentials, businesses can validate customer identity and regulatory compliance in real time across EU borders, leveraging standardized attributes such as those referenced in Annex V of eIDAS 2.0.
• Real Example: The EU Digital Identity Pilot Projects demonstrated that cross-border e-signature and KYC verification times dropped by over 50% when using the wallet prototype.

3. Automated HR and Credential Management

• Scenario: Human Resources departments often face delays verifying diplomas, professional licenses, and employment history for new hires.
• How the Wallet Helps: The Business Wallet enables job candidates to present official academic and employment attestations, instantly verified and cryptographically secured.
• Data Point: According to Eurostat, administrative delays cost EU businesses nearly €100 billion annually; automating HR credential checks can significantly reduce this figure.

4. Enhanced Customer Loyalty and Personalization

• Scenario: Businesses want to personalize offers and loyalty programs without breaching data privacy laws or losing customer trust.
• How the Wallet Helps: Customers can share selective attributes (e.g., age group, location) via the wallet, allowing for granular personalization with explicit consent and GDPR alignment.
• Internal Link: For more on privacy protections, read Building Trust in the Digital Age: How the EU Digital Identity Wallet Protects Your Business.

5. Instant Onboarding for Regulated Digital Services

• Scenario: Services in finance, healthcare, and government require repeated proof of eligibility or authorization (e.g., access to restricted medications, qualified investor status).
• How the Wallet Helps: Credential types defined by the EUDI Reference Framework let users share only necessary proofs, unlocking restricted services instantly, without overexposing sensitive data.

Business Wallet Use Cases: At-a-Glance Table

The Road Forward: Preparing for Mainstream Adoption

The EU Digital Identity Wallet is still evolving, but with mandatory acceptance for key services on the horizon, early adopters gain strategic advantages. Several pilot programs—co-financed by the European Commission—show robust results:

• The Digital Europe Programme funds pilots integrating the wallet into banking, travel, and education, revealing strong user adoption and smoother compliance checks.
• Notable Case: In 2024, a pan-European eProcurement trial allowed SMEs to instantly access public tenders using wallet-issued business credentials, cutting onboarding from weeks to minutes.

Next Steps for European Businesses

To begin integrating these advanced use cases:

1. Assess internal readiness: Map out workflows that hinge on identity verification and ask vendors about wallet compatibility.
2. Participate in Pilots: Leverage opportunities funded by the EU to test solutions in real-world scenarios.
3. Monitor regulatory updates: Stay tuned to changes in eIDAS 2.0, especially as implementation dates and technical requirements solidify.

For further reading:

• The Overlooked Value of Business Wallet Pilots: Lessons from EU Digital Identity Trials
• Driving Business Growth: Unexplored Paths with EU Digital Identity Wallet

Conclusion: Innovate and Lead with Digital Identity

The EU Digital Identity Wallet is not just a compliance requirement—it's a platform for innovation and competitive advantage in the European Single Market. Businesses that proactively adopt and experiment with advanced use cases will gain the edge, offering smoother customer journeys and gaining trust through robust security and privacy.

Ready to future-proof your business? Explore Business Wallet’s solutions and join the next wave of digital transformation.