EU business lobby backs digital wallet plan, calls for proportionate identity rules

Europe’s leading business organization has thrown its support behind the EU’s proposed European Business Wallets (EWB), calling the initiative a significant opportunity to cut red tape, while laying out a list of conditions for the system to succeed – including those related to identity assurance.

In a position paper published this week, BusinessEurope says the EBW could streamline compliance across corporate, tax and anti-money laundering frameworks, and help businesses navigate cross-border operations more efficiently.

The lobbying group, however, also notes that providing a verified digital business identity should remain a “proportionate and low-cost exercise.”

“Assurance requirements should remain proportionate to specific use cases and based on a risk-based approach,” the paper notes.

A substantial level of assurance is likely to be sufficient for most professional interactions in practice, while higher levels should be reserved for particularly sensitive operations. All levels of assurance should be accessible within a single business wallet, ensuring businesses do not incur additional administrative burdens, the organization says.

Among the technical priorities, the organization calls for the wallet to support role-based authorization, allowing companies to delegate access to multiple employees. To achieve that, the EBW must be interoperable with the EU Digital Identity (EUDI) for natural persons.

It also urged the adoption of high cybersecurity and data protection standards to secure sensitive and valuable business data.

“Ideally, the wallets would be operated by a Qualified Trust Service Provider (QTSP) or meet the general criteria under Article 24 of the eIDAS Regulation,” the document notes.

The EBW concept was introduced to the public at the beginning of 2025 as part of the EU’s Competitiveness Compass. The wallets’ main task will be digitizing operations for companies, organizations, and public administration, which will be able to  “digitally sign, timestamp and seal documents; securely create, store and exchange verified documents; and communicate securely with other businesses or public administrations in their own and the other 26 Member States,” according to the Commission.

​Earlier this year, the European Commission’s Committee on Industry, Research and Energy (ITRE) published a draft proposal for a regulation of the EWB.

The EU predicts that business wallets for legal persons could unlock 150 billion euros (US$172.5 billion) in savings for businesses each year.

BusinessEurope, however, warns that the wallet must not become yet another layer of administrative burden. Harmonization should be the system’s central goal, as European businesses currently navigate 27 separate national administrative systems.

The group argues for accelerating the implementation timelines. It also flagged the need for protections against unfair business practices by wallet providers, such as abusive pricing.

Overlapping procedures should be replaced by implementing a “once-only” principle, requiring businesses to submit data to authorities only once. The EBW should also remain optional for companies, says BusinessEurope.

Article Topics

digital wallets  |  EU Digital Identity Wallet  |  Europe  |  European Business Wallet  |  identity assurance