Coming by 2026: How the EU Digital Identity Wallet Will Impact Small Businesses – Inside and Outside the EU

The European Union is preparing to roll out a new digital identity system that could change the way your business checks who people are—whether they're customers, employees, or partners. It's called the EU Digital Identity Wallet (EUDI Wallet), and it allows anyone living in the EU to prove their identity and share verified documents through a secure mobile app.

The European Digital Identity Framework came into force in May 2024, and under this regulation, each EU Member State must offer at least one version of the wallet by 2026. While national apps will vary in design, all will follow the same technical standards to ensure they work across borders.

Backed by EU governments, the EUDI Wallet will store verified personal and professional information—such as ID cards, diplomas, business credentials, and more—in one trusted, tamper-proof place. And it’s not just for individuals: businesses will also be able to get their own wallet to prove their identity in B2B settings or when accessing services.

Whether your business is based in the EU or outside it but serving EU customers, this shift brings both opportunities and responsibilities. 

Here's what this means for entrepreneurs and small business owners.

10 Things You Should Know About the EUDI Wallet

1. It's coming by December 2026

By the end of 2026, every EU country must provide a free national digital identity and wallet app to residents. Over 30 national wallets will be rolled out—each following the same EU-wide standards.

2. It's free for EU residents

EU citizens will be able to download their country's version of the wallet for free. It will include verified documents like IDs and diplomas. Businesses can also apply for their own wallet to confirm their identity in B2B relationships.

3. Regulated industries must accept it by 2027

If you work in banking, insurance, healthcare, telecom, energy, education, or public services, you'll be required to support EUDI Wallet logins and ID checks by 2027. This applies to all wallet versions across the EU.

4. It's for more than just government services

People will use their wallet to log into accounts, sign contracts, or verify their age online—safely and efficiently—without oversharing personal information.

5. It works across borders

A Danish customer can use their wallet to open a bank account in France or rent a car in Italy. The same applies to businesses verifying cross-border partners or clients. It simplifies onboarding and lowers costs.

6. It meets high security standards

The wallet will be certified to the highest level of security and use tamper-proof credentials from trusted sources like governments, banks, or universities.

7. It's privacy-first and GDPR-aligned

The wallet is designed to share only the information that's absolutely necessary. For example, you can confirm someone is over 18 without accessing their full birthdate. There's no profiling or tracking involved.

8. It's backed by EU law

The wallet is part of eIDAS 2.0, a revised EU regulation that ensures consistent rules, strong protections, and full interoperability across all Member States.

9. It stores more than just ID

Users can add diplomas, business licenses, tax records, driver's licenses, and more. These are verified and easy to share with your business when needed.

10. Your business can issue digital documents too

Companies will be able to send verified documents like contracts, warranties, or service confirmations directly to a customer's wallet—saving time and reducing risk.

Related:

• How to Check If Your Business Is Affected by a Breach (And What to Do if It Is)
• What Is Business Identity Theft and How to Protect Your Business

What It Means for Small Businesses in the EU

If you run a small business in the EU, the EUDI Wallet is something you'll soon use—either directly or through the way you interact with customers, staff, or suppliers.

Faster, safer onboarding

• You'll receive trusted, pre-verified information directly from the user's wallet—cutting down on paperwork, errors, and the risk of fraud.

Verify your business identity

• Your business can get its own wallet to prove its legitimacy when working with partners or applying for services.

Easier document delivery

• Contracts, invoices, and certificates can be issued straight into your clients' wallets—no more chasing PDFs or resending lost emails.

Simpler GDPR compliance

• Since the wallet shares only the minimum necessary information, staying privacy-compliant becomes easier by design.

Smoother cross-border business

• Verifying clients or partners in another EU country becomes quicker and more reliable—unlocking new growth opportunities.

 Related: 8 Ways to Protect Your Very Small Business Reputation Online

What It Means for Small Businesses Outside the EU

If your business is based outside Europe but sells to or works with EU clients and partners, the EUDI Wallet could soon impact how you build trust, verify information, and meet privacy expectations.

EU customers will expect to use it

• As the wallet becomes widely adopted, EU users may prefer to log in or sign up using their digital ID—similar to how people now use Apple or Google sign-in.

You may need to support it in regulated industries

• If you operate in finance, telecom, or healthcare and serve EU clients, accepting wallet-based authentication may become mandatory.

It simplifies identity verification

• You'll receive official, tamper-proof data—ideal for KYC (Know Your Customer) or KYB (Know Your Business) processes, with less manual review.

Privacy built in

• Need to check someone's eligibility or location? The wallet can confirm details without oversharing personal data—making GDPR compliance smoother.

Better customer experience

• Supporting wallet-based verification shows European clients that your business is secure, modern, and easy to work with.

Staying competitive in the EU market

• With over 400 million residents expected to use it, the EUDI Wallet could quickly become the standard. Being ready now puts your business ahead of the curve.

Related: 10 Cybersecurity Tips to Protect Your Small Business Data

Get Ready for a New Standard in Digital Trust

Whether your business is in Barcelona or Boston, the EU Digital Identity Wallet is laying the foundation for a safer, more unified digital economy.

For EU-based businesses, it will soon become part of everyday operations. For non-EU companies, it's a chance to build trust, reduce friction, and show that you're committed to secure, privacy-respecting digital practices.

At Bitdefender, we stand by these high standards. As a cybersecurity company born and built in Europe, we understand the value of trust, privacy, and strong regulation. Bitdefender Ultimate Small Business Security is designed to protect businesses like yours—offering advanced threat protection, identity security, and fraud prevention that align with the very principles driving the EU Digital Identity Wallet.

Whether you're preparing to adopt new digital ID systems or simply want to secure what you've already built, we're here to help you do it with confidence.

Try it for free; start your trial today.