European Business Wallets: what they are and what problems they aim to address

In debates on the EU’s Digital Single Market, excessive administrative burdens, particularly in cross-border activities, have long been highlighted. Companies devote a significant share of their resources to identification, document verification and confirmation of representation. European Business Wallets are one response to this challenge, developed as part of the European Commission’s Digital Package and the legal framework of eIDAS 2.0.

A business wallet is not a new register or a central database. Its purpose is to enable a company to use a single digital legal identity, recognised across the EU, together with a set of verified attributes such as registration data, licences, certificates or representation powers. The solution is based on the architecture of the EU Digital Identity Wallets, which Member States are expected to roll out by the end of 2026, adapted to the specific characteristics of legal persons.

A key feature of the business wallet is the link between the identity of the company and the identity of the natural person acting on its behalf. The system is intended to confirm not only the existence of the company, but also the scope of authority of a specific individual. This is relevant for signing documents, submitting statements, and interacting with public authorities.

From a business perspective, business wallets are intended to enable, among other things:

• immediate verification of counterparties’ identities,
• creation, storage, and sharing of documents to which a defined level of trust can be assigned,
• digital signing and sealing of documents with legal effect across the EU,
• delegation of powers to act on behalf of the company,
• communication with other businesses and public authorities through a single, secure channel.

For SMEs, the wallet may matter most in everyday, repeatable processes, especially cross-border onboarding, where identity, documents, and representation are checked multiple times. By sharing once-verified data and authorisations, it could also streamline interactions with public authorities and reduce errors caused by inconsistent or outdated paperwork.

In this context, European Business Wallets are a very positive step towards reducing administrative friction in the Single Market. The European Commission indicates that, with widespread uptake, annual savings for EU businesses could reach at least EUR 160 billion, but the “devil is in the details”: outcomes will depend on common standards, interoperability, administrative acceptance, and companies’ ability to integrate the solution, manage mandates, and ensure security.

Business wallets are therefore not just another digital tool, but an effort to standardise how companies across the EU prove identity, authority, and document reliability, potentially lowering transaction costs and simplifying day-to-day processes for both businesses and public authorities.