For EU consumers, trust in EUDI Wallet will need to be earned over time: IDnow

The deadline for EU member states to offer a digital wallet under the EU Digital Identity Wallet (EUDI Wallet) scheme is fast approaching. Efforts continue to publicize the rollout and promote the benefits of digital ID. But, according to new research from German identity verification provider IDnow, there’s more work to be done ahead of the December 31 cutoff.

The company’s EUDI Wallet Consumer Survey shows that, among 2,000 adults surveyed across France and Germany, trust remains a key problem for widespread adoption of EUDI Wallets. Critical issues include concerns about fraud, greater control over how they share their data, and the ability to track what data is being used.

These security issues supersede speed in terms of importance for users. In particular, 63 percent of consumers also stated they would be “more likely to use the EUDI Wallet if they could confirm certain details, such as their age, without having to disclose all their information” – a core value proposition of the EUDI Wallet.

Security is more important than speed (but speed is still a problem)

There are several causes for consternation among respondents. Identity verification processes are seen as too complex; nearly half of respondents say they often abandon a transaction when verification takes too long. That said, security is once again paramount, with an equivalent number of respondents saying they would accept additional checks if they increased security.

Generally, however, the conclusion is that despite various nations’ efforts to make digital transformation efficient, Europeans will not change their habits quickly; adoption will take time, and trust must be earned. For now, customers’ preferred method for verifying their identity when opening a bank account still skews toward in-person verification at 24 percent, with only 14 percent preferring a digital identity wallet.

Philippe Morel, CEO of IDnow, says the data tells a clear story. “European consumers understand the problem that the EUDI Wallet is designed to solve, but they have not yet been convinced that this is the solution. They know that identity fraud is rising. They know that online verification is broken. They know that sharing more data than necessary carries real risk. What they have not yet seen is a solution they can trust and that is precisely the gap the EUDI Wallet must close.”

IDnow believes the best-prepared institutions “will be able to guide each customer toward their preferred onboarding process and required level of assurance, without disrupting the experience.” The firm has launched its IDnow Trust Platform to help achieve that.

Article Topics

consumer adoption  |  digital ID  |  digital wallets  |  EU Digital Identity Wallet  |  IDnow