The identity wallet will be implemented in EU countries by the end of 2026. Its use is not mandatory for citizens, but it improves user data protection and promotes equality.
We carry smartphones everywhere, but few can leave home with just their phone. However, this situation will soon change, as by the end of 2026, a digital identity wallet will be introduced in all EU countries.
“The identity wallet is an application that operates on a smartphone, allowing users to securely verify identity information and access related services, such as electronic identification and signing,” explains Mikko Pitkänen, Director of Digital Support Services and Interoperability at the Digital and Population Data Services Agency of Finland.
In addition to identification, the wallet may in the future contain various permits and certificates, such as travel, work, and educational certificates, as well as driving licenses, pension cards, and vaccination cards.
“An ecosystem will develop around the digital identity wallet, which can include various public and private sector services and certificates,” says Lauri Käkelä, Senior Designer at Gofore, who is involved in the development of the wallet.
In Finland, the Ministry of Finance is responsible for the identity wallet project. The Digital and Population Data Services Agency is piloting and developing the wallet, with Gofore also participating in the development work.
EU regulation ensures interoperability and security
Finland is involved in three EU pilot projects that explore the integration of mobile driving licenses, educational data and certificates, and corporate digital identities into the identity wallet. Each pilot involves several EU member states.
“All of Europe is building new digital infrastructure together. By examining the results of the pilots, we can ensure that the wallet develops to be flexible and versatile,” says Mikko Pitkänen.
The EU’s eIDAS regulation defines the electronic trust services used within the EU, such as identification tools and signatures. The technical implementing regulations of the updated regulation in spring 2024 also define what kind of information can be transmitted through the digital identity wallet.
When all EU countries develop their national identity wallets simultaneously, it is possible to create solutions that work together.
When all EU countries develop their national identity wallets simultaneously, it is possible to create solutions that work together. “The regulations require EU member states to build the wallet in the same way at the same time. When all EU countries develop their national identity wallets simultaneously, it is possible to create solutions that work together,” says Pitkänen.
The regulation mandates that each member state must publish a digital identity wallet for its citizens by the end of 2026.
The wallet enhances data protection
Although the identity wallet will be available to everyone in a couple of years, its adoption is not mandatory for citizens. Traditional plastic and paper documents will remain alongside the digital identity wallet.
According to Pitkänen and Käkelä, there are many reasons why it is worth adopting the identity wallet. Among other things, the wallet improves user data protection, they say.
The eIDAS regulation provides concrete guidelines on the level of data protection required for the development of wallet services and the handling of information. Additionally, each member state must appoint a data protection authority to oversee the use of the wallet.
Käkelä points out that anyone can get hold of the cards and certificates in a leather wallet dropped on the street. “But if you drop your phone on the street, your information in the digital identity wallet is first protected by the phone’s lock and then by the app’s lock.”
The user of the digital identity wallet can present only the information needed for a specific transaction at each place. For example, when proving age, the wallet can only confirm that you are of legal age without sharing other information. Each person can decide what identity-related information or permits to share from the wallet at any given time.
“If you now rent a car or buy a bottle of wine, you show a certificate that reveals much more than what is relevant for renting the car or buying the wine,” Käkelä says.
Promoting equality
The digital identity wallet also promotes equality. The eIDAS regulation aims to ensure that digital identity services are available to every EU citizen.
A digital identity refers to digitally stored information about a person, based on which the person can be identified. “Digital identity is the cornerstone of society’s digital development. Based on high-quality identity information, a person and their information can be reliably identified,” says Mikko Pitkänen.
The digital identity wallet does not require a bank or telecom operator account but is an identification tool provided by the state to every citizen. “Currently, the most common ways to log into services like Kela or the tax office’s online services require a bank or other company account. Not everyone has that opportunity, and not everyone wants to use an account for identification,” notes Käkelä from Gofore.
Digital identity is the cornerstone of society’s digital development.
Increasing the number of services
Lauri Käkelä explains that the development of the digital identity wallet has explored both nationally and across Europe what people will want in the wallet in the future. For example, electronic prescriptions and other healthcare-related documents, travel documents, loyalty cards, professional qualifications and licenses, and CVs could be found in the identity wallet in the future.
A large part of the wallet’s use cases and certificates still involves transferring old matters into digital form, Käkelä points out. “As time goes on, surely entirely new ways to use the wallet will develop,” he says.
Mikko Pitkänen hopes that Finns will adopt the digital identity wallet in large numbers. He realistically believes that the wallet could be widely used in five years. “We are a small country whose citizens already use many electronic services. The widespread adoption of the identity wallet is important because we cannot afford to maintain services that are only used by a small group.”
Pitkänen also reminds that the digital identity wallet attracts both public and private service providers more as its user base grows. In ten years, the wallet ecosystem will have attracted a wide range of public and private actors, Pitkänen hopes. “They will publish verified information for use in wallets, making our daily lives even smoother.”
Six factors for successful digital identity solutions:
- Foundation in place: registers and data quality
- Systemic understanding and architecture
- Ensuring trust by integrating security
- User-centricity and accessibility at the core
- Interoperability testing between solutions of different countries and actors
- Managing complex stakeholder entities, information flow, and change management
