Features of EU Digital Identity Wallet App Development

Modern consumers want secure and user-controlled digital identity solutions that give them control over their personal data. As businesses in Europe get ready for this major change, attention is turning to new technologies that can connect security, convenience, and regulatory compliance. At the forefront of this shift is the EU Digital Identity Wallet App, an innovative solution that aims to transform how we handle digital identity verification and cross-border transactions.

With eIDAS 2.0 requiring compliance by 2027, organizations face a crucial deadline and a unique opportunity. Early adopters who invest in EUDIW-compliant development now will gain significant advantages. They will benefit from easier user onboarding, increased customer trust, lower compliance costs, and smooth access to new European markets.

With years of hands-on experience in creating digital identity solutions, we know what it takes to build an app that’s both compliant and user-friendly. IdeaUsher has been instrumental in bringing complex projects to life, helping clients navigate through digital identity challenges. We’re putting together this blog to highlight the key features of the EU digital identity wallet app and outline the steps to develop a similar solution. Let’s dive in!

Key Market Takeaways for EU Digital Identity Wallet Apps

According to 360IResearch, the EU Digital Identity Wallet market is rapidly expanding, with a projected growth from USD 3.40 billion in 2024 to USD 3.98 billion in 2025, representing a strong CAGR of 17.09%. 

By 2030, the sector is expected to reach USD 8.78 billion, driven by the EU’s regulatory push under the eIDAS 2.0 framework. This mandates that all EU Member States provide at least one digital wallet solution by 2026, positioning digital identity apps as essential tools for secure authentication and data sharing across the region.

Source: 360IResearch

These wallets offer users a unified, cross-border platform to access both public and private services, including banking, healthcare, education, and travel. By streamlining online interactions and transactions, they enhance user privacy and trust while reducing friction. The apps are designed to cater to both individual users and organizations, providing solutions for a broad range of personal and enterprise needs.

Noteworthy initiatives include the EU Digital Identity Wallet Consortium, which is testing solutions across various sectors like government, banking, and healthcare, involving over 350 entities across 26 Member States. 

Another example is the NOBID pilot, bringing together Nordic, Baltic, Italian, and German partners to develop wallet-based payments and digital authentication systems.

What is the EU Digital Identity Wallet App?

The EU Digital Identity Wallet is a secure digital application that allows European citizens to store and manage their essential identity documents and credentials, such as national IDs, educational diplomas, medical prescriptions, and more, directly on their smartphones or other personal devices.

Its core objectives, as set out by the eIDAS 2.0 regulation, are twofold:

• Empowering citizens with control over their digital identity: You decide what personal information to share, who you share it with, and when.
• Creating a seamless, secure, and standardized method for citizens and businesses to interact online across all 27 EU member states.

Think of it as a digital wallet for your most important personal data, but with a crucial difference: you hold the keys. It’s designed to be universally accepted, privacy-friendly, and legally binding across the EU.

The Role of Key Players

• Governments: EU member state governments are responsible for ensuring that every citizen has access to the EUDI Wallet. They act as the primary Issuers of foundational credentials like national IDs, driving licenses, and birth certificates. Governments also maintain the national trust frameworks, ensuring security and interoperability across the system.
• Private Companies: Private companies will innovate and adopt the technology behind the EUDI Wallet. They will develop wallet applications under strict certification and act as Verifiers (or “Relying Parties”). These companies will integrate the wallet into their services for purposes such as logins, age verification, contract signings, and more.

Legal Framework: eIDAS 2.0 and the 2027 Mandate

The initiative is backed by an updated piece of legislation known as eIDAS 2.0 (electronic IDentification, Authentication, and trust Services), which lays the foundation for digital identification in the EU.

A key aspect of this regulation is the 2027 Mandate, which requires very large online platforms (like social media sites and online marketplaces) and certain public services to accept the EU Digital Identity Wallet for user authentication by 2027. 

This is a legally binding timeline, not a suggestion, which means businesses must start preparing now. The regulation also clarifies the responsibilities of all involved parties, ensuring high levels of security, privacy, and liability protection for both users and enterprises.

How It Works: The Trust Triangle

The EUDI Wallet operates based on a model called the “Trust Triangle”, involving three key parties: Issuers, Holders, and Verifiers.

Let’s understand the process with an example of renting a car online:

• Issuance: The government (Issuer) issues a Verifiable Credential for a user’s national ID, which is securely stored on their smartphone (Holder). This credential is cryptographically signed to prevent tampering.
• Request: When a user goes to rent a car, the rental company’s website (Verifier) sends a request asking the user to prove they are over the minimum age.
• Consent and Presentation: The user opens the EUDI Wallet app, sees the request, and approves it. Thanks to Selective Disclosure, the wallet doesn’t send the entire ID card but instead provides a cryptographically verifiable proof stating, “Yes, the holder is over 21.” This proof is then presented to the Verifier.
• Verification: The rental company’s system verifies the proof’s digital signature by checking it against the trusted public keys of the government (Issuer). The verification is done automatically, securely, and instantly.

Key Features of an EU Digital Identity Wallet App

The EU Digital Identity Wallet app lets you store and manage your official documents securely, with full control over what information you share. It’s designed to work seamlessly across all EU countries, ensuring privacy and security at every step.

1. Mandated Cross-Border Interoperability

Unlike other digital IDs that are often country-specific, the EUDI Wallet is a unified solution for the entire European Union. The eIDAS 2.0 regulation ensures that a wallet issued by any EU member state is legally and technically recognized across all 27 countries, allowing businesses to serve a pan-European market effortlessly.

2. Privacy  and Selective Disclosure

Built with data minimization at its core, the wallet ensures that users share only the essential information. For example, a user can prove they are over 18 without revealing their exact birthdate. This reduces businesses’ data collection needs and helps them comply with GDPR requirements.

3. Government-Backed Trust 

The credentials in the EUDI Wallet are issued by trusted government authorities, providing a tamper-proof, legally valid form of identity verification. This ensures a high level of assurance, reducing fraud and the need for manual identity checks, offering businesses a reliable and secure solution.

4. Qualified Electronic Signatures

The wallet offers a Qualified Electronic Signature for non-professional use at no cost to the user. As the highest level of electronic signature validity in Europe, this feature enables businesses to facilitate legally binding contracts and agreements without requiring separate e-signature services.

5. Multi-Purpose Credential Vault

The wallet is designed to store a wide range of official documents beyond just a national ID, including driver’s licenses, professional certifications, academic diplomas, and health records. This versatility unlocks numerous use cases for businesses across sectors such as banking, healthcare, and education.

6. Secure and Decentralized Architecture

The wallet operates on a federated, decentralized network, with data stored locally on the user’s device instead of in a central database. This reduces the risk of large-scale data breaches and ensures users have full control over their personal information.

7. Harmonized User Experience 

Despite the potential for minor variations in design between country-issued wallets, the EUDI Wallet follows common technical standards. This ensures that login and attribute exchange protocols are consistent across all EU states, providing a seamless and frictionless experience for businesses and their customers.

Benefits of EU Digital Identity Wallet App Development

The EU Digital Identity Wallet streamlines security by using cryptographically signed credentials, cutting down on fraud and boosting trust. It simplifies GDPR compliance by minimizing the data you store, reducing risks and costs.

1. Stronger Security & Fraud Reduction

The EUDI Wallet’s cryptographically signed credentials replace easily forged documents, eliminating synthetic identity fraud. This enhances security, reduces financial losses, and boosts your brand’s reputation by ensuring trust-backed verifications.

2. Lighter GDPR Compliance Burden

With data minimization at its core, the EUDI Wallet only requires the specific verified claims you need, reducing the amount of sensitive data you store. This simplifies GDPR compliance, lowers data protection costs, and reduces the risk of breaches.

3. Faster, Cheaper KYC/AML

The EUDI Wallet automates verification, cutting down onboarding time from days to seconds. This reduces operational costs by up to 80% and significantly improves conversion rates, directly boosting your revenue.

4. Seamless Cross-Border Expansion

The EUDI Wallet’s interoperability across all EU member states simplifies cross-border operations. A single integration opens access to over 450 million potential customers, lowering development costs and speeding up market entry.

5. Enhanced Customer Trust

By giving consumers full control over their data and clear consent flows, the EUDI Wallet builds trust. This transparency enhances your brand’s reputation, fostering loyalty and positioning you as a modern, privacy-conscious business.

6. Long-Term Cost Savings

The EUDI Wallet’s standardized framework eliminates the need for maintaining multiple national systems. It offers a future-proof, cost-efficient solution that reduces development overhead and prepares your business for long-term growth in the digital identity space.

How to Develop an EU Digital Identity Wallet App?

We specialize in developing secure, legally compliant EU Digital Identity Wallet Apps for our clients. These apps enable users to securely manage and share their identity information, credentials, and official documents while meeting eIDAS 2.0 regulation standards. Here’s a step-by-step guide to how we approach the development process.

1. Understand eIDAS 2.0 Framework

The first step is understanding the eIDAS 2.0 Regulation, the legal foundation for the wallet’s functionality. We ensure that every aspect of our development aligns with the regulation, including data protection principles and requirements for qualified electronic signatures.

2. Adhere to EU’s Technical Toolbox

We follow the EU Technical Toolbox, which includes the Architecture and Reference Framework. By adhering to these standards, we make sure the wallet is interoperable with other EU systems, ensuring it is legally accepted for cross-border transactions.

3. Ensure GDPR Compliance by Design

We build the wallet with GDPR compliance in mind. We implement privacy by design, ensuring users only share the necessary data. Features like Selective Disclosure and a privacy dashboard give users control over their personal information while maintaining compliance with privacy laws.

4. Strong Security and Cryptography

Security is a top priority. We use advanced encryption and secure authentication mechanisms to protect sensitive data. This ensures the wallet meets eIDAS 2.0 security standards, preventing fraud and protecting user privacy at every step.

5. Develop an Open-Source Code Base

The wallet’s software components are open-source licensed, as required by eIDAS 2.0. This provides transparency and allows for public code reviews, ensuring security and compliance while keeping the wallet adaptable to future regulatory changes.

6. Integrate with National eID Schemes

We integrate the wallet with national eID systems to ensure users can securely verify their identity and access digital credentials. This integration ensures the wallet complies with each country’s eID standards, making it legally recognized across the EU.

7. Obtain Certification and Accreditation

After development, we guide our clients through the certification process. This ensures the wallet complies with all legal and technical standards, allowing it to be officially recognized for identity verification and other legal services.

8. Legally Binding Electronic Signature

The wallet supports legally binding electronic signatures (QES), allowing users to sign contracts digitally. This functionality ensures compliance with eIDAS 2.0 and facilitates secure digital transactions for businesses.

9. Ongoing Compliance & Updates

Since eIDAS 2.0 evolves, we help clients plan for ongoing compliance. We monitor legal changes and ensure the wallet app is regularly updated, keeping it secure and compliant with the latest regulations and standards.

Use Case: Simplifying Cross-Border Lending

A fintech company had a simple but ambitious idea: a customer in Berlin should easily secure a loan from a lender in Barcelona, just like ordering a book online. But the reality was much more complicated. They faced huge challenges, from complex identity verification across borders to the slow pace of manual document checks and the risk of fraud.

• The 27-Rule Problem: How could they verify a customer’s identity and residency across 27 different EU countries without building expensive and time-consuming integrations with each nation’s ID system?
• The Speed Trap: Manual document checks for international applications could take weeks, crushing the promise of an instant loan.
• The Fraud Fear: Verifying foreign IDs and documents from another country was a risky challenge, and fraud was a constant concern.
• The Compliance Labyrinth: Navigating complex KYC/AML regulations across multiple borders felt like a legal maze.

What they needed was a single, secure, and compliant solution that could unlock the European market. That’s when they turned to us.

The Solution: One Integration to Unlock a Continent of Opportunity

Leveraging our team’s deep expertise, we designed and implemented a game-changing solution. We integrated the EU Digital Identity Wallet (EUDI Wallet) directly into the fintech’s loan application process, transforming it from a multi-step headache into a seamless, one-click experience.

Here’s how it worked:

The Simple Application: A user in Germany opens the fintech’s app, chooses a loan from a Spanish lender, and clicks “Apply.”

The Smart Request: Instead of uploading documents, the app prompts, “Verify your eligibility with your EUDI Wallet.”

The Secure Handshake: The user consents and uses their wallet to provide two critical, pre-verified claims:

• Proof of Age: A cryptographically signed attestation confirming they are over 18.
• Proof of Residency: A verified confirmation of their country of residence.

Thanks to Selective Disclosure, the user only shares the necessary details, like “Over 18” and “Country of Residency,” not their full ID number or birth date.

The Instant Decision: Our system instantly validates these credentials against the EU’s trust registry. The lender in Spain receives a definitive “YES” on eligibility in seconds, leading to an almost instant loan approval.

The Outcome: Speed, Security, and a Competitive Edge

The impact was immediate:

• Onboarding in Seconds, Not Weeks: The verification process went from taking weeks to just seconds, making the dream of an instant cross-border loan a reality.
• Fraud Risk Cut to Near-Zero: By relying on government-issued, tamper-proof credentials, the fintech eliminated the risk of fraud right from the start.
• Explosive Market Access: With a single integration, the fintech could serve customers across all 27 EU member states, unlocking rapid growth.
• Automated Compliance: Built-in compliance with eIDAS 2.0 and EU regulations made it a smooth, seamless process.
• A New Brand Standard: The fintech positioned itself as a leader in the cross-border lending space, known for its innovation and user-friendly experience.

Conclusion

The EU Digital Identity Wallet is more than just a compliance measure; it’s a valuable business tool that drives growth. Early adoption opens doors to cross-border scalability, lower risk, and stronger user trust. At Idea Usher, we simplify the integration of these complex systems into seamless, revenue-generating digital identity apps that can propel your business forward.

Looking to Develop a EU Digital Identity Wallet App?

With over 500,000 hours of coding experience, our team, made up of ex-MAANG/FAANG developers, crafts solutions that are secure, scalable, and forward-thinking. We focus on the challenges that matter most:

• On-device security, powered by Secure Elements
• Privacy-preserving Zero-Knowledge Proofs
• Seamless interoperability across platforms

We don’t just build for today, we future-proof your wallet, ensuring it’s compliant now and ready for tomorrow’s opportunities.

If you’re looking to create a wallet that earns user trust and propels your business forward, take a look at our latest projects. Let us show you what we can build together.

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