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Digital identity in the EU is undergoing one of its biggest transformations yet and businesses need to be ready. The updated eIDAS 2 regulation promises stronger trust services, a unified European Digital Identity Wallet and tighter security rules that will redefine how companies onboard clients, sign contracts and exchange sensitive data across borders.
But what does this mean in practice? Who must comply? And what should companies start preparing for right now?
This article breaks down everything businesses need to know, so you can approach eIDAS 2 not just as a compliance obligation, but as an opportunity to improve processes and strengthen digital trust.
eIDAS 2 is the renewed EU framework regulating digital identity, electronic signatures, trust services and online verification. The regulation updates the original eIDAS rules by introducing more secure, interoperable and user-friendly digital identity systems across all EU Member States.
The most talked-about change is the European Digital Identity Wallet (EUDI Wallet), a secure mobile app enabling individuals and businesses to store and share verified identity attributes and other information, sign documents, or authenticate online in seconds.
For companies, this shift brings new obligations but also major benefits: faster verification, less paperwork, stronger cybersecurity and smoother cross-border operations.
eIDAS 2 introduces several changes that directly affect business operations:
Each EU state will have to provide a state operated EUDI Wallet. The EUDI Wallet will be free of charge for personal use thus enhancing its potential for widespread use. Its use by governments and businesses when interacting with individuals will span from online identity verification to digital signatures and secure information sharing.
Companies operating in regulated sectors, such as finance, insurance, utilities, telecom, transport and other high-impact services, must be able to accept the EUDI Wallet as a valid method of identification.
The regulation updates standards for qualified electronic signatures, electronic seals, timestamps, electronic registered delivery services and website authentication.
These services become more interoperable across borders, reducing friction in multinational operations.
These newly defined services support modern business needs, such as electronic archiving, electronic ledgers (important for audit trails, supply chain, finance) and remote signing.
Next to qualified trust service providers, eIDAS 2 also introduces non-qualified trust service providers.
Companies will need stronger data governance, clear policies, secure storage and reliable providers.
Not all organisations are affected in the same way. The following business categories should pay close attention.
Businesses in high-impact sectors: Banks and finance institutions, insurance companies, telecom operators, utilities, healthcare providers, transport companies, digital infrastructure providers, postal services, education and large e-commerce platforms will be required to accept EUDI wallets.
Companies relying on identity verification: Businesses that need to verify clients, contractors or employees, for example during onboarding, Know-Your-Customer checks, or remote hiring.
E-commerce & online business: Higher standards of customer identification and improving user experience during online shopping or engaging with online services are key opportunities under eIDAS 2.
Cross-border businesses: Companies operating in multiple EU markets will face new opportunities but also new integration requirements.
All companies using digital signatures or digital workflows: Even if the impact is lighter, businesses must ensure their internal tools and trust services meet the new standards.
Business that are required or plan to use the EUDI Wallet must register in advance with the competent authority in the respective EU state.
Client and employee onboarding is notably accelerated and made more secure due to the use of verified identity attributes stored in the EUDI Wallet. The wallet employs advanced authentication methods, which greatly reduce impersonation and fraud risks.
Employment contracts, internal approvals and sensitive employee documents become significantly easier to manage electronically, streamlining HR and administrative workflows for greater efficiency.
Contracts signed using EUDI Wallet and compliant electronic signatures and seals will enjoy the same legal effect across all EU Member States, simplifying cross-border operations.
Companies must update internal processes, documentation and employee training to ensure alignment with eIDAS 2 requirements, leading to higher internal compliance.
It is essential that company portals, HRIS, CRMs, or accounting tools are able to technically accept the EUDI Wallet or integrate with certified trust service providers, ensuring a seamless transition and compliance with new standards.
Many businesses see eIDAS 2 only through the lens of compliance, but the regulation actually enables major improvements. Companies benefit from faster verification and contracting, higher trust in online interactions and reduced administrative costs.
Additionally, the adoption of eIDAS 2 leads to fewer manual checks and errors, facilitates easier cross-border expansion and supports seamless remote work and remote onboarding, as well as KYC processes. Organisations also gain more reliable digital audit trails.
Companies should start preparing by focusing on:
Only those operating in specific sectors or providing essential digital services. Micro and small enterprises that employ fewer than 50 people and whose annual turnover or annual balance sheet does not exceed EUR 10 million, are exempted from obligatory EUDI Wallet implementation. However, many companies will voluntarily adopt it to improve user experience and security.
Yes, as long as it meets the updated eIDAS 2 requirements. Some providers may need certification upgrades.
Yes. Identity verification, digital onboarding and contract signing become more secure and streamlined.
Implementation is staged, giving businesses time to adapt, but early preparation is recommended to avoid rushed compliance. Most provisions of eIDAS 2 come into force by the end of 2026. High-impact sectors will be required to accept EUDI Wallet as means of authentication by the end of 2027.
SMEs are affected if they operate in high-impact sectors (banking, digital infrastructure, health, etc.).
We support companies in implementing regulatory changes with efficiency and security, guiding them through every step of the process. Our comprehensive approach covers compliance gap analysis across HR, payroll, accounting and legal workflows and we assess the impact of eIDAS 2 on identity verification, onboarding, document management and approval procedures. In addition, we assist with updating contracts, policies and procedures, help select trust service providers that meet compliance standards and ensure cross-border alignment for multinational businesses.
Furthermore, we establish compliant document archiving processes, adapt HR and employee onboarding procedures to current standards and deliver training to internal teams. By integrating our legal, tax, payroll and digital expertise, we help your organisation build a secure ecosystem that ensures robust operational standards, full compliance and supports both your everyday operations and long-term growth.
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