EUDI Wallet sees progress but also criticism

The European Union’s Digital Identity (EUDI) Wallet is seeing progress as companies such as Findynet, Signicat and Namirial make new announcements. But although the project to give each European citizen a digital ID could thrive, it could also lead to risks to consumer privacy such as tracking, according to a report from German consumer protection organizations.

Findynet issues RFI

The Findynet Cooperative has published a Request for Information (RFI) inviting digital ID companies interested in developing products for its pilot projects, including the Kela-HSL pensioner discount pilot hosted by Finland’s social insurance institution Kela.

The Helsinki-based public-private organization is tasked with developing a national trust network for verifiable data which will help convert documents used by pensioners, students, entrepreneurs and other individuals into digital credentials.

The request for information (RFI) will explore digital ID wallets that are interoperable with Findynet’s technical specifications. The company is also exploring the possibility of funding a selected provider to implement Findynet interoperability in their wallet solution. The deadline for applications is March 12th, 2025.

Signicat joins WE BUILD

Signicat is the latest company to announce its participation in the WE BUILD consortium and participating in the second round of large-scale pilots (LSPs) testing the EUDI Wallet.

The Norwegian digital ID verification firm will focus on boosting B2B transactions by enabling customers to access personal and organizational wallets, issuing verifiable credentials related to organizations into a wallet and signing on behalf of an organization with a wallet, according to an announcement published on Monday.

While the first round of the EU’s large-scale pilots for digital identity focused on individuals, the second round will center on the European Business Wallet. Scheduled to launch in September, WE BUILD (Wallet Ecosystem for Business and payments Use cases on Identification, Legal representation and Data sharing) will pilot 13 key use cases in businesses and payments. Among participating companies are Raidiam, Youverse and Izertis.

Signicat has already participated in large-scale pilots as part of the EWC and NOBID consortium.

Namirial launches digital ID wallet platform

Trust services and digital transactions company Namirial is launching a wallet platform that will support private and public organizations in government banking, transportation, and services in integrating into the EUDI Wallet.

The Namirial Wallet Platform will include several tools, including the Wallet Gateway which was tested as part of the POTENTIAL large-scale pilot project. The Gateway not only supports the integration between digital ID wallets and online services but also allows the creation of customizable onboarding workflows. This includes multiple identification methods, variable parameters, and diverse data sources, enabling compliance with different regulations for Know Your Customer (KYC), Know Your Business (KYB) and Know Your Transaction (KYT).

The Italian firm has also completed technical integration for its electronic signature eSignAnywhere and will release the qualified electronic signature (QES) after it receives approvals, according to last week’s announcement.

Among other tools, Namirial plans to introduce an infrastructure for Qualified Electronic Attestation of Attributes ((Q)EAA), which enables organizations to issue and manage digital credentials under the eIDAS 2 regulation. Last but not least, the company is developing a Wallet-as-a-Service (WaaS) offering.

“Through experimentation with selected customers and pilot projects, the beta version of the Namirial wallet – already supporting Person Identification Data (PID) and Legal Person Identification Data (LPID) – is looking ahead to the future with the European Business Wallet,” the company says.

How could the EUDI Wallet thrive?

The EUDI Wallet could lead to impressive results – if it tackles its challenges wisely. For success stories, countries need to look at Belgium and Estonia, says Anton Chashchin, founder of private fintech firm N7 Capital.

Belgium’s adoption of digital identity Itsme was fueled by the government mandate requiring a COVID-19 pass to visit restaurants: The company doubled its user base from 3 million to 6 million within a year. In Estonia, the introduction of an eID application has significantly reduced bank fraud cases, from 1 case out of 200 citizens to 1 case per 2,500 citizens.

The EUDI Wallet is particularly important for small and medium-sized enterprises (SMEs), saving them money and time by automating KYCs and simplifying data exchange with customers, partners, and government agencies through Verified Electronic Attestations (QEAAs), Chashchin explains in an opinion piece published last week by media outlet Recursive.

“EUDI Wallet is not just a convenient tool for Europe but also an example of how to create a unified digital identity system,” he says. “International cooperation and harmonization of standards are necessary for the successful implementation of the project.”

Estonia’s e-ID journey was also the topic of a recent podcast published by digital government services agency e-Estonia. Speakers discussed the inception of Estonia’s eID, the EUDI Wallet’s integration with Estonia’s digital infrastructure and the country’s work on interoperability.

The podcast invites companies and figures directly involved in the making of the East European country’s digitalization, including CEO of SK ID Solutions Kalev Pihl, Riho Kurg from Zetes and Cybernetica’s Aivo Kalu.

EUDI Wallet could be used to track citizens: Report

While the EUDI Wallet could solve many issues, it could also pose privacy and data risks to consumers, according to a report by the German Federation of Consumer Organizations (Verbraucherzentrale Bundesverband, VZBZ). The umbrella organization gathers more than 40 German consumer associations.

Among the dangers highlighted in the report is the lack of visibility for consumers into how governments, companies and other stakeholders use their data and digital identity, according to the analysis published in November last year with the help of security company Defendo IT.

Another issue is the lack of safeguards that prevent the governments providing the wallet from surveilling what its users do with it. According to current specifications and depending on the implementation of the wallet, Relying Parties and Issuers may “collude in secret to track users comprehensively,”

“The principles of data security and privacy have been incorporated into the specification and development process,” says the report. “However, the current specification falls short of its potential for both security and the preservation of privacy. It needs to undergo a major revision before all desired properties can be achieved.”

Despite these warnings, the report concludes that the EUDI Wallet still has plenty of legislative steps ahead and that a “consumer-friendly” implementation can be achieved.

Article Topics

digital ID  |  digital wallets  |  EU Digital Identity Wallet  |  Findynet  |  Namirial  |  Signicat  |  WE BUILD consortium