Aravind Narayan
Increasingly sophisticated fraud attacks are forcing organisations to rethink how they verify identity online. Against this backdrop, the European Digital Identity (EUDI) framework marks a significant shift in how individuals can prove who they are across Europe.
At a glance:
- The EUDI framework will reshape digital identity across Europe, with all EU member states required to provide at least one EUDI Wallet by December 2026.
- Consumers will gain greater control over their personal data by design, including the ability to selectively disclose identity information and manage how it is shared.
- Organisations need to prepare now to integrate EUDI into their workflows, whilst limiting customer friction.
Fraud erodes trust
Fraud is rising across the globe, eroding trust in digital finance and fundamentally changing how people interact with online services. It creates emotional and behavioural damage, with many struggling to navigate its aftermath.
LSEG's Global Fraud Report, which looked at how 21,000 adults across the globe perceive fraud risk, found that 29% of adults have lost trust in people and companies following a scam. When consumers lose confidence in digital interactions, it weakens the trust that underpins the broader digital ecosystem. 37% of fraud victims avoid certain types of transactions or channels in the wake of a scam, limiting industry impacts.
It is also important to recognise that fraud has evolved far beyond the use of stolen or forged documents. Today, organisations face increasingly sophisticated threats, including synthetic identities, deepfakes, and account opening fraud. As fraudsters leverage AI and automation to scale their attacks, traditional prevention methods alone are no longer sufficient. Businesses need modern identity verification solutions that can adapt to an increasingly complex and AI-driven threat landscape.
One of the most significant developments is the European Digital Identity (EUDI) framework, an EU-wide initiative designed to create a trusted and interoperable digital identity ecosystem across member states.
EUDI is changing how identity can be established and trusted
Through EUDI Wallets, individuals will be able to securely store, manage and share verified identity information and other trusted credentials online. The framework aims to make digital interactions more secure, private and consistent across Europe while giving users greater control over their personal data. Ultimately, the EUDI framework is intended to support security in cross-border digital interactions, but also to deliver more privacy and user control.
Yet, for organisations, EUDI introduces new considerations around controlled scaling and integration, whilst meeting regulatory requirements.
How the EUDI framework changes identity verification
The EUDI framework brings several changes, most significantly:
- Faster and more consistent cross-border onboarding
The EUDI framework is designed to make cross-border digital identity easier. EUDI Wallets will enable users to present trusted identity information through their wallets when accessing participating services across Europe.
- Greater privacy and customer trust through selective disclosure
EUDI Wallets support selective disclosure, allowing users to share only the information required for a specific transaction rather than an entire identity record. This supports data minimisation and privacy by design.
- The ability to add more credentials and move beyond basic identity information
The EUDI framework supports the addition of more credentials, which allows trusted information beyond core identity data to be presented digitally. Examples can include qualifications and other verified attributes.
- The ability to manage digital identity and data sharing
Users will be able to see which relying parties they have interacted with and, where applicable, what information has been shared. Existing GDPR rights, including the rights to data portability and to request the erasure of personal data, continue to apply where relevant.
- New layer of safety
EUDI Wallets are expected to operate at a high assurance level and use cryptographically signed data. This can support stronger identity assurance compared with traditional identity processes.
It is time to prepare for EUDI
There are some important EUDI dates to keep in mind:
- December 2026: Under the revised eIDAS framework, all 27 EU member states must provide at least one EUDI Wallet. However, adoption is unlikely to be uniform, with some countries expected to progress more quickly than others. Organisations operating across multiple markets will need to navigate different levels of digital identity maturity and adoption.
- December 2027: EUDI Wallet acceptance becomes mandatory for certain regulated sectors. Private organisations such as banks, financial services firms and Very Large Online Platforms (VLOPs) will be required to accept EUDI Wallets under the revised eIDAS framework.
With EUDI implementation timelines progressing, organisations that expect to rely on EUDI Wallets should begin preparing for relying party registration in their Member State of establishment, in line with Article 5b requirements. Further, organisations must consider EUDI within their broader identity strategy and prepare to support trusted digital identities.
Managing EUDI complexity at scale
While EUDI simplifies digital identity for consumers, it may increase complexity for organisations that need to support multiple wallets, credentials and verification methods. One approach to managing this complexity is the use of a unified identity orchestration platform. One way to manage this complexity is through identity orchestration: connecting to multiple trusted digital identity schemes through a single integration, rather than building and maintaining each one separately.
This approach can give customers more choice in how they prove who they are, whether through an EUDI Wallet, a national digital identity scheme or another trusted provider. At the same time, it helps organisations reduce onboarding friction and keep the verification experience consistent across markets. It can also make it easier to support new schemes as adoption grows, without redesigning onboarding journeys each time.
EUDI represents one of the most significant changes to digital identity in Europe in recent years. Organisations that begin planning now will be better positioned to deliver trusted customer experiences, strengthen identity assurance and meet evolving regulatory requirements as adoption accelerates.
Find out how you can strengthen identity assurance across markets without adding friction or operational overhead.
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