The EU Digital Wallet (EUDI Wallet) and electronic signatures

The EU Digital Identity Wallet (EUDI Wallet, European Digital Identity Wallet) will, in the coming years, change the way Europeans authenticate and sign documents. In this article, we will go through what the EUDI Wallet practically means, how it affects electronic signatures for small businesses, and what needs to be taken care of now.

What is the EUDI Wallet?

The EUDI Wallet is an EU-wide smartphone application where citizens, residents, and businesses can store:

• official electronic identity
• various digital certificates and authorizations (e.g., driver's license, degree certificate, company authorizations)
• the ability to sign documents electronically and authenticate to services both online and in person

The background is eIDAS 2.0 Regulation (EU) 2024/1183, which entered into force in May 2024 and obliges every EU country to offer at least one official EUDI Wallet to citizens, residents, and businesses by the end of 2026. In Finland, the Digital and Population Data Services Agency (DVV) is building the national wallet.

What is the current status – Europe and Finland

Several large pilot projects are underway in the EU (e.g., POTENTIAL, EWC, DC4EU) testing the wallet's use in everyday situations:

• opening a bank account
• logging into official services
• displaying an electronic driver's license
• digital travel documents

Hundreds of companies and authorities from almost all EU countries are participating in the pilots. In Finland, the DVV is building a national wallet, which is intended to be launched by the end of 2026 and have its features gradually expanded. Currently, strong authentication is still handled through Suomi.fi-tunnistautuminen (bank IDs, mobile certificate), and these systems are being connected to the upcoming wallet.

How will the EUDI Wallet affect electronic signing?

The EUDI Wallet brings the electronic signature to the pocket of every EU citizen. Until now, an accepted (QES-level) electronic signature has practically required a separate certificate and an associated device. With the wallet, every EU citizen can get an approved signature certificate directly on their phone.

From a small business perspective, this practically means:

• customer identification becomes easier – a single, unified method across the EU
• agreements can be signed directly from the customer's phone
• cross-border business becomes easier when authentication works the same way in different countries
• fewer separate country-specific authentication methods are needed

A small business owner does not need to build this technology themselves, but rather choose an electronic signature service that will eventually integrate with the EUDI Wallet – in the same way that current services integrate with bank authentication.

What does a small business get concretely?

1. One authentication for the entire EU

A customer or employee can authenticate in the same way across the EU, regardless of the service or company's location. Fewer country-specific login solutions and fewer proprietary authentication setups.

2. Electronic signatures directly from the wallet

A document signed with an EUDI Wallet complies with eIDAS rules, and its legal effect can be on the same level as current strong electronic signatures. This facilitates sales, employment, and international agreements.

3. Certificates and authorizations in one place

Professional licenses, degree certificates, and business transaction rights can also be stored in the wallet. This facilitates recruitment, checking subcontractors, and ensuring the right person is authorized to sign on behalf of the company.

4. Fewer login credentials and passwords

The wallet can be used both online and in person. The user controls their own data, and the service only receives what it needs. This reduces security risks associated with passwords.

5. Unified digital customer journey

When authentication, signature, and certificates are in the same wallet, the entire customer journey can be handled digitally: authentication → signature → data directly into the system → invoicing.

Preparation checklist for small businesses

1. Adopt an electronic signature service that supports strong authentication (e.g., EpicSign).
2. Follow your software provider's announcements regarding EUDI support.
3. Ensure that document archiving is in electronic format.
4. Check that your company has Suomi.fi-tunnistautuminen in order.
5. Find out if you have EU internal customers for whom EUDI could facilitate cooperation.

GDPR perspective: personal data and the wallet

• The wallet adheres to the principle of data minimization – the recipient only receives the necessary information.
• The user controls their own data and decides what to share.
• Service providers are not allowed to track user activity across different services.
• Data retention periods comply with GDPR requirements.

Example: design agency and international clients

A small design agency in Helsinki works on projects for both Finnish and German clients. Currently, authentication methods differ: bank IDs in Finland, eID card in Germany. With the EUDI Wallet, clients from both countries can authenticate and sign agreements in the same way directly from their phones. Time is saved particularly at the beginning of the contract process, as separate country-specific instructions are not needed.

Frequently asked questions

Summary

The EU's digital wallet is a major change, but for a small business, it ultimately means simple benefits: a single, EU-level way to identify customers, electronic signatures directly from the customer's phone, less manual document checking, and easier growth within the EU. Technology and legislation will come into force in stages, but the direction is clear: digital identity and signatures will be in your pocket, not in binders.

Sources

1. eIDAS 2.0 Regulation (EU) 2024/1183 – Digital Identity Framework
2. European Commission – European Digital Identity Wallet
3. Digital and Population Data Services Agency (DVV) – Finland's Digital Wallet
4. Suomi.fi identification – electronic authentication
5. EU General Data Protection Regulation (GDPR) – EUR-Lex
6. EU Digital Identity – Large Scale Pilots (POTENTIAL, EWC, DC4EU, NOBID)

This article is general in nature and does not constitute legal advice.