Digital ID for companies: EU Commission plans the European Business Wallet

Companies are also to receive a digital identity in the EU. Similar to the EUDI Wallets planned for EU citizens, the European Business Wallet is intended to enable companies to have secure and trustworthy identification and authentication throughout the EU for business transactions and with authorities. The EU Commission hopes to simplify administrative processes and achieve cost savings – the savings potential is expected to be over 150 billion euros per year with widespread use of the wallet.

The Business Wallet, presented as part of the EU Commission's Digital Omnibus Package, is intended to have the same legal status as actions performed in person, on paper, or by other legally recognized methods. In addition to identification, the wallet will also allow companies to sign, timestamp, or seal documents. This would enable companies to create and exchange verified digital documents such as licenses, certificates, and permits.

No obligation for companies

However, only public administration will be obliged to support the European Business Wallet. Under the current draft, companies are free to decide whether or not to use the wallet. In an accompanying document to the draft law, the EU Commission estimates the costs of introducing it in public administration at around 7.33 billion euros in the first year, with 6.18 billion euros being one-time implementation costs for training, software changes, and the like.

For businesses, the introduction could incur costs of just over 45 billion euros in the first year across three-quarters of all companies, of which 25 billion euros are one-time costs. Ultimately, however, the savings potential is expected to far outweigh the costs of implementation and operation.

Two-year implementation phase

The technical architecture and functions of the Business Wallets are to be based on the EUDI Wallets, thus offering an interoperable cloud-based identity solution. Wallet providers will be responsible for guaranteeing cryptographic integrity and confidentiality between the backend and frontend of the wallet applications and devices. The EU Commission will work out precise technical standards and requirements together with its member states and the private sector and conduct large-scale pilot projects.

In any case, the draft for the wallet still needs to be approved by the European Parliament and the member states. After adoption, a two-year transition period for the introduction of the European Business Wallet is currently planned for all levels of public administration throughout the EU.

(axk)