Cost to Create an EU Digital Identity Wallet in 2025

Managing identity online has always been a balancing act between convenience and security, with people constantly juggling multiple logins, storing sensitive documents, and navigating inconsistent verification processes. For both citizens and businesses, this ongoing struggle creates unnecessary friction and exposes them to risks, which is why the EU digital identity wallet is being introduced as a trusted and unified way to prove identity and access services across Europe.

Instead of scattered systems and repetitive checks, the wallet offers a secure digital space powered by blockchain, encryption, mobile technology, and government-backed verification. It allows users to manage identity data with confidence, enabling tasks such as opening a bank account, proving age, or applying for public services to be completed seamlessly with just a few taps. By reducing both complexity and risk, it sets the stage for a more reliable digital experience.

In this blog, we’ll explore the cost factors involved in creating an EU digital identity wallet in 2025, the technical aspects that shape its development, and the steps organizations must take to prepare for this shift in digital infrastructure. With deep experience in secure and scalable solutions in various industries, IdeaUsher has experience in developing EU-compliant wallets that enhance operational efficiency and deliver sustainable strategic value for the long term.

What is the EU Digital Identity Wallet?

The EU Digital Identity Wallet is a government-approved mobile application that enables European citizens and businesses to securely store, access, and share their official identification data in digital form. It is designed under the EU’s eIDAS 2.0 regulation to provide a single, trusted solution for managing identity documents such as national IDs, driving licenses, health records, and educational or professional certificates directly from a smartphone.

This wallet plays a pivotal role in the European Digital Identity (EUDI) framework by enabling secure, seamless, and privacy-focused identity verification and data sharing across the EU.

• Unified Digital Identity: Provides a single, interoperable digital identity solution for all EU citizens and businesses, reducing the need for multiple authentication systems.
• Cross-Border Authentication: Enables users to securely access services and prove their identity across all EU member states without physical documentation.
• Privacy & User Control: Gives individuals full control over which personal data they share, ensuring compliance with GDPR and building trust in digital services
• Secure Data Sharing: Uses advanced encryption and authentication standards to safeguard sensitive identity information while enabling seamless verification.
• Access to Public and Private Services: Acts as a gateway to online government services, banking, healthcare, education, and e-commerce platforms within the EU.
• Support for EU Digital Single Market: Helps establish a unified digital ecosystem, reducing barriers to digital transactions and fostering economic growth.

Core Functions and Impact of the EU Digital Identity Wallet

The EU Digital Identity Wallet is designed to simplify identity verification while enhancing security and privacy across the European Union. It functions as a single, trusted platform that connects citizens, businesses, and governments in a secure digital ecosystem.

Core Functions:

• Secure Identity Storage: Stores verified identity documents such as ID cards, driving licenses, diplomas, and health records in a secure digital format
• Authentication & Verification: Allows individuals and businesses to prove their identity quickly and safely for access to services
• Selective Data Sharing: Lets users control exactly what information they share, minimizing unnecessary exposure of personal data.
• Digital Signatures: Supports legally binding digital signatures for contracts and documents.

Impact:

• Enhanced Digital Trust: Builds confidence in digital services by ensuring secure and verifiable identity verification.
• Cross-Border Efficiency: Removes barriers in accessing services across EU member states.
• Data Privacy & Control: Strengthens user control over personal information, supporting GDPR compliance.
• Economic Growth: Facilitates seamless transactions, boosting efficiency in public services and private-sector operations.

How does the EU Digital Identity Wallet Work?

The EU Digital Identity Wallet functions as a secure, user-controlled digital platform for storing and sharing verified identity credentials. It uses blockchain technology, strong encryption, and advanced authentication protocols to ensure privacy, trust, and compliance.

1. User Registration & Identity Linking

Users register through their national identity systems or approved identity providers. Verified documents such as ID cards, driver’s licenses, diplomas, or health records are linked to the wallet using secure API integrations and cryptographic verification methods.

2. Secure Storage of Identity Data

All identity attributes are stored in end-to-end encrypted form, ensuring personal data remains protected from unauthorized access while being accessible to the wallet owner anytime.

3. Authentication Process

The wallet uses biometric authentication, two-factor verification, and cryptographic keys to verify identity before granting access to sensitive data or services. These technologies enhance security without compromising usability.

4. Selective Data Sharing

Users control what identity information to share through privacy-preserving protocols and attribute-based access controls. This ensures only necessary data is disclosed while protecting other personal details.

5. Access to Public & Private Services

Once authenticated, users can seamlessly access services across the EU including government portals, banking, healthcare, education, and e-commerce via secure interoperability frameworks built into the wallet.

6. Audit & Compliance

Every transaction and data-sharing activity is securely logged using blockchain-based auditing systems, ensuring transparency, accountability, and compliance with EU regulations.

Why the EU Digital Identity Wallet Market Is Booming?

The global digital identity solutions market was estimated at USD 39.07 billion in 2024 and is projected to reach USD 98.64 billion by 2030, growing at a CAGR of 16% from 2025 to 2030. This surge is driven by increasing concerns over cybersecurity, the need for streamlined digital services, and supportive government initiatives.

In May 2024, the European Union enacted the European Digital Identity Regulation (EU 2024/1183), mandating that all member states provide a certified digital identity wallet to their citizens by November 2026. These wallets aim to offer secure, user-controlled access to personal data, facilitating services like banking, healthcare, and e-government across borders.

The European Commission has allocated substantial funding to support digital identity solutions. The EU Digital Identity Wallet Consortium received co-funding under the Digital Europe Programme, which also issued calls for proposals to promote digital identity wallet technologies.

The EU Digital Identity Wallet market is experiencing rapid growth due to a confluence of regulatory mandates, substantial funding, and a clear demand for secure digital identification solutions. As member states work towards 2026, the market is poised for significant expansion, offering opportunities for innovation and enhanced digital services across Europe.

Why 2025 is a Key Year for Digital Identity Wallets?

The year 2025 is set to be a landmark moment for the adoption of digital identity wallets. This is driven by regulatory advances, technological readiness, and strong government initiatives across the EU, paving the way for secure, interoperable identity solutions.

1. Regulatory Milestones

2025 will introduce binding regulations under the EUDI framework that standardize digital identity wallets across EU member states. These rules will ensure interoperability, legal compliance, and secure identity verification at scale.

2. Technological Readiness

Advances in blockchain, end-to-end encryption, biometric authentication, and privacy-preserving protocols make large-scale deployment of digital identity wallets technically viable and secure in 2025.

3. Pilot Programs and National Launches

Several EU countries plan to pilot or launch their national wallet systems in 2025, testing functionality, interoperability, and adoption before a broader rollout. These pilots will provide valuable insights for further optimization.

4. Public Awareness & Adoption

2025 will see coordinated efforts by governments and private sector stakeholders to promote awareness of digital identity wallets, building public trust and ensuring smooth adoption across demographics.

5. Cross-Sector Integration

Digital identity wallets will begin integration into sectors like banking, healthcare, transport, education, and e-commerce. This will transform how identity verification works, making it seamless, secure, and privacy-friendly.

6. Strategic Foundation for the Future

By setting 2025 as a critical milestone, the EU lays the groundwork for a unified digital identity ecosystem, creating a foundation for secure identity verification that benefits individuals, businesses, and governments.

Cost Breakdown of EU Digital ID Wallet Development

The digital identity wallet cost depends on several factors, including security features, regulatory compliance, and integration needs. Breaking down these expenses gives businesses clarity to plan a scalable and future-ready EU Digital ID Wallet.

Total Estimated Development Cost

The total estimated development cost of an EU Digital Identity Wallet depends on design, security, and compliance needs. A clear estimate helps businesses budget effectively and avoid hidden expenses.

• MVP App (Core Identity & Compliance Features): $70,000 – $85,000
• Mid-Level App (With Biometric Security + API Integrations): $95,000 – $120,000
• Enterprise-Grade Platform (Blockchain + Advanced eIDAS 2.0 Compliance): $130,000 – $160,000+

Note: The cost of building an EU Digital ID Wallet depends on compliance requirements, data security protocols, and integrations with biometric systems, blockchain, and third-party services.

Consult with IdeaUsher for a tailored estimate. With proven expertise in EU regulatory alignment, digital identity platforms, and secure app development, our developers can design a scalable roadmap, optimize costs, and ensure your wallet is fully compliant and market-ready.

Ongoing Costs of EU Digital ID Wallet Development

The ongoing costs of EU Digital ID Wallet development include maintenance, updates, and compliance with evolving regulations. Understanding these expenses is essential for sustainable and secure wallet operation.

1. App Maintenance & Updates (~ $8,000 – $18,000 annually)

This includes bug fixes, UI/UX improvements, feature enhancements, and performance optimization. Regular maintenance ensures the wallet runs smoothly across devices and operating systems, preventing technical issues and downtime.

Impact: Ensures reliability, improves user experience, and maintains trust among citizens, businesses, and regulators.

2. Compliance & Regulatory Alignment (~ $10,000 – $20,000 annually)

Continuous updates are required to adhere to eIDAS 2.0 and other EU digital identity regulations. This covers changes in legal requirements, cross-border interoperability, and local compliance mandates.

Impact: Keeps the wallet legally valid across all EU member states, mitigating regulatory risks and building confidence among users and authorities.

3. Server Hosting & Security Infrastructure (~ $6,000 – $15,000 annually)

Costs cover secure cloud servers, data encryption, multi-layered security monitoring, and backup systems to protect sensitive identity data from breaches or cyberattacks.

Impact: Protects sensitive citizen data, prevents security incidents, and ensures uninterrupted access to wallet services.

4. Technical Support (~ $7,000 – $15,000 annually)

Provides dedicated assistance to wallet users and partner organizations. Includes troubleshooting, resolving technical issues, and implementing feature improvements.

Impact: Enhances user satisfaction, promotes adoption, and ensures smooth operation for both end-users and institutional partners.

How the EU digital identity wallet app Generate Revenue & Value?

The EU Digital Identity Wallet, part of the EU Digital Identity framework linked to eIDAS 2.0, aims to offer secure, standardized digital IDs for EU citizens. Although primarily for public services, it can also generate revenue and value for stakeholders.

1. Direct Revenue Models

The wallet itself is provided for free to EU citizens, so direct revenue from users is minimal. However, revenue generation can happen indirectly through:

• Government or public funding: EU member states and the EU may allocate budgets for its development, integration, and maintenance.
• Premium services for businesses: Private companies could pay for APIs or services to integrate EU wallet verification into their systems (KYC, onboarding, e-signatures).

2. Indirect Revenue Through Service Ecosystems

The wallet enables third-party services to monetize new opportunities:

• Identity verification for businesses: Banks, insurance companies, telecoms, and e-commerce platforms can reduce fraud and onboarding costs using wallet verification.
• Digital signing and notarization: Services like signing contracts, verifying documents, or performing age verification can become revenue streams for companies integrated with the wallet.
• Cross-border e-commerce facilitation: Simplifying customer identity verification can reduce friction and increase international sales.

3. Value Creation

Even without direct profit, the wallet provides significant value for multiple stakeholders. It builds trust, simplifies processes, and gives users more control over their digital identities.

A. For Citizens

• Convenience: Single, secure access to government and private services.
• Security: Reduced risk of identity theft with standardized authentication.
• Portability: Works across all EU countries, supporting digital mobility.

B. For Businesses

• Cost savings: Less need for manual KYC processes and fraud management.
• Customer trust: Using an EU-backed identity standard increases trust and reduces onboarding friction.
• Compliance: Helps companies comply with EU regulations like AML (Anti-Money Laundering) and GDPR.

C. For Governments

• Efficiency: Digital-first identity reduces paperwork and administrative costs.
• Transparency: Easier auditing and fraud detection in public services.
• Economic growth: Simplifies digital business, boosting cross-border trade and e-services.

4. Potential Long-Term Revenue Streams

• Data services (privacy-preserving): Aggregated, anonymized insights could be valuable to policymakers or businesses while respecting GDPR.
• Integration with fintech or blockchain solutions: Trusted identities could become key infrastructure for new digital financial services.
• Licensing technology: EU member states or private providers could license wallet APIs to other regions or sectors.

Features That Influence Development Cost

The development of a digital identity wallet involves multiple factors that directly impact its budget, making understanding these elements crucial for accurate planning. Key features, security measures, and integration capabilities all play a significant role in determining the overall digital identity wallet cost.

1. Identity Verification & KYC Integration 

Investment Range: ~ $12,000 – $20,000

The wallet should support secure onboarding, including document verification, biometric authentication (facial recognition, fingerprints), and government-issued ID validation. This ensures that users are authenticated and legally recognized.

Business ROI: Reduces fraud, ensures regulatory compliance, and builds trust with users and authorities.

Strategic Advantage: Enables a legally compliant, secure, and scalable identity verification system that enhances adoption across EU countries.

2. Biometric Security Layer 

Investment Range: ~ $10,000 – $18,000

Integrating fingerprint, facial, and iris recognition ensures high-level security for wallet access and sensitive transactions. Multi-factor authentication strengthens user data protection.

Business ROI: Minimizes identity theft, protects sensitive citizen data, and lowers the risk of breaches or legal penalties.

Strategic Advantage: Positions the wallet as a secure, advanced solution trusted by both individuals and institutions.

3. Wallet & Credential Storage 

Investment Range: ~ $8,000 – $15,000

Securely stores digital credentials, identity proofs, and transaction histories in encrypted databases while enabling easy retrieval for users and services.

Business ROI: Streamlines access to verified digital IDs, reduces operational overhead, and supports multiple service integrations.

Strategic Advantage: Offers users a convenient, secure, and interoperable platform that can integrate with government and private sector services.

4. Blockchain-Enabled Data Integrity 

Investment Range: ~ $15,000 – $25,000

Uses blockchain to create an immutable, tamper-proof record of user credentials and identity transactions, ensuring transparency and auditability.

Business ROI: Prevents data tampering, strengthens regulatory compliance, and builds trust in the digital ID ecosystem.

Strategic Advantage: Differentiates the platform as a cutting-edge, secure, and reliable solution for governments and enterprises.

5. API & Third-Party Service Integration 

Investment Range: ~ $7,000 – $12,000

Supports integration with banks, e-government portals, payment services, and other platforms for verification, authentication, and service delivery.

Business ROI: Expands usability, drives adoption, and creates potential revenue streams via partnerships and API licensing.

Strategic Advantage: Ensures interoperability across multiple services, increasing the wallet’s relevance and ecosystem value.

6. Multi-Language & Accessibility Support 

Investment Range: ~ $6,000 – $10,000

The wallet should support multiple EU languages and accessibility features for users with disabilities, ensuring inclusivity and compliance with accessibility regulations.

Business ROI: Expands user adoption across diverse populations and increases engagement by making the wallet usable for all citizens.

Strategic Advantage: Positions the platform as a truly inclusive solution, enhancing brand reputation and regulatory alignment.

7. Digital Signature & Transaction Authorization 

Investment Range: ~ $9,000 – $14,000

Enables users to digitally sign documents, authorize transactions, and interact with services securely using their wallet credentials.

Business ROI: Reduces reliance on paper-based processes, increases transaction efficiency, and supports e-government and financial integrations.

Strategic Advantage: Offers a legally recognized and secure way to interact digitally, boosting trust and ecosystem adoption.

8. Real-Time Alerts & Notifications 

Investment Range: ~ $4,000 – $8,000

Provides instant notifications for authentication requests, credential updates, or potential security breaches to keep users informed and engaged.

Business ROI: Improves user engagement, reduces security risks, and supports proactive issue resolution.

Strategic Advantage: Enhances platform responsiveness and user confidence, strengthening loyalty and continuous usage.

Challenges & How to Overcome Them?

Developing an EU digital identity wallet involves addressing regulatory, technical, and operational challenges. Tackling these issues effectively ensures secure, compliant, and widely adopted digital identity solutions across Europe.

1. Regulatory Compliance & Alignment

Challenge: EU digital identity wallets must meet eIDAS 2.0 and local regulations in multiple countries, which are complex and continuously evolving, creating high compliance risk.

Solution: We implement continuous regulatory monitoring and design the wallet with flexible architecture. This allows the EU digital identity wallet to adapt quickly to evolving compliance requirements, ensuring full adherence across all member states.

2. Data Security & Privacy

Challenge: Digital identity wallets store sensitive personal data, making them prime targets for cyberattacks and privacy breaches, which could compromise citizen trust.

Solution: We use end-to-end encryption, multi-factor authentication, and secure storage protocols. Security systems are regularly audited and tested to maintain GDPR compliance while protecting all user data effectively.

3. Interoperability Across Systems

Challenge: The wallet must work seamlessly with government portals, banks, and private platforms across countries, requiring cross-platform compatibility and consistent data exchange.

Solution: We build standardized APIs and adopt open protocols to enable smooth integration with third-party services, ensuring interoperability across government, banking, and private sector systems.

4. User Adoption & Trust

Challenge: Citizens may hesitate to adopt digital wallets due to privacy concerns, technical complexity, or unclear benefits, slowing platform uptake.

Solution: We design intuitive UI/UX, provide educational campaigns, and enforce transparent privacy policies. Clear value propositions, such as fast service access and secure digital signatures, encourage widespread adoption.

5. Scalability & Performance

Challenge: As the user base grows, the wallet platform must maintain high performance without downtime, supporting thousands of concurrent users.

Solution: We implement cloud-based infrastructure, load balancing, and modular architecture. This ensures the wallet scales efficiently, delivering fast response times and reliable service even under heavy user demand.

How IdeaUsher Will Help to Build an EU Digital Identity Wallet App?

IdeaUsher provides end-to-end development support for EU Digital Identity Wallets, ensuring regulatory compliance, security, and seamless user experience. Our team works closely with clients to translate requirements into a scalable, high-performing platform.

1. Consultation & Requirement Analysis

We conduct thorough consultations to understand business goals, target users, and regulatory requirements. This helps define a clear development roadmap tailored to your needs.

2. Architecture & Blockchain Integration

Our developers design secure, modular architecture and integrate blockchain where necessary to ensure data integrity and tamper-proof records. They also implement rigorous code reviews and automated testing to maintain high-quality, resilient, and future-proof solutions.

3. Core & Advanced Feature Implementation

From KYC, biometric authentication, and credential storage to digital signatures, notifications, and cross-platform integrations, we build all essential and value-added features.

4. UI/UX & App Development

Our designers focuses on intuitive design, accessibility, and multi-language support to maximize adoption and usability across diverse EU populations. We also prioritize seamless integration and responsive performance to ensure a consistent experience across all devices and platforms.

5. Security Audits & Compliance Checks

Continuous testing, vulnerability assessments, and GDPR/eIDAS compliance verification are conducted to ensure trust, reliability, and regulatory alignment. Additionally, we implement robust data encryption and secure authentication protocols to safeguard user information and maintain system integrity.

6. Deployment, Maintenance & Scaling

We handle end-to-end deployment, ongoing updates, and performance optimization, enabling the wallet to scale efficiently with a growing user base. Our support team also provides proactive monitoring and rapid issue resolution to maintain uninterrupted service and high user satisfaction.

Conclusion

Getting a clear picture of what goes into an EU digital identity wallet makes all the difference. The digital identity wallet cost isn’t just about development hours; it reflects security measures, compliance, and the features users actually need. Paying attention to these details helps organizations plan wisely and avoid overspending. When functionality and security are balanced with usability, the result is a wallet that works smoothly for users while staying within budget. It is about making smart choices that add real value without unnecessary expense.

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