European Business Wallet Glossary 2026: Terminology, Regulation and Architecture

A systematic overview for businesses of the terminology, regulatory context and technical foundations of the European Business Wallet.

Following the introduction of the “European Digital Identity (EUDI) Wallet” as a digital wallet for citizens, the “European Business Wallet” is now being introduced as a complementary solution. It is intended to reduce bureaucratic barriers for businesses and simplify the secure exchange of data between companies, authorities and across complex value chains. According to the European Commission, administrative and regulatory requirements are among the biggest business challenges for 55% of SMEs. With the introduction of the Business Wallet, which is planned to be rolled out gradually by early 2027, the EU estimates that businesses could save at least EUR 160 billion annually through reduced administrative burdens. This glossary explains the terms, concepts and stakeholders relevant to understanding and implementing the European Business Wallet.

I. Regulatory Framework - eIDAS 2.0

eIDAS 2.0

The eIDAS 2.0 Regulation, which entered into force on 20 May 2024, is the revision of the European legal framework for electronic identification and trust services. It builds on the original eIDAS Regulation, which has been in force since 2014, and forms the regulatory foundation for a unified, cross-border identity ecosystem within the EU.

The key innovation is the introduction of the European Digital Identity Wallet (EUDI Wallet), which is expected to provide citizens, businesses and organisations with a standardised digital identification solution from 2027 onwards. This will enable identity data to be securely managed and selectively shared.

In addition, eIDAS 2.0 expands the requirements for trust services such as electronic signatures, seals and timestamps, which will become interoperable and legally binding across the EU. At the same time, the regulation strengthens data sovereignty and security by ensuring that users retain control over their data and only share the information that is necessary.

Architecture Framework

The Architecture and Reference Framework (ARF) is the EU Commission’s technical rulebook for implementing the European Digital Identity Wallet. It defines common standards and interfaces for wallet ecosystems. Its objective is to create an interoperable and secure infrastructure that enables the cross-border exchange of identity data and simplifies digital interactions between businesses, authorities and other stakeholders.

EU Anti-Money Laundering Regulation 2027 - EU AML Regulation 2027

The EU’s new Anti-Money Laundering Regulation (AMLR) establishes, for the first time, a uniform framework for combating money laundering and terrorist financing and will apply directly in all Member States from 10 July 2027. It introduces stricter compliance requirements for banks, financial institutions and other affected businesses. In particular, due diligence obligations, customer due diligence procedures, the identification of beneficial owners, the monitoring of suspicious activities and compliance with targeted financial sanctions will be strengthened. The framework is complemented by the revised Funds Transfer Regulation (Recast FTR), which particularly strengthens the traceability of crypto-asset transactions. Overall, requirements relating to transparency, documentation and risk management will increase significantly.

II. Identities & Wallets

European Digital Identity Wallet (EUDI Wallet)

The EUDI Wallet (European Digital Identity Wallet), commonly referred to as the digital wallet, is a government-recognised digital wallet that will allow citizens and businesses to securely identify themselves online and offline in the future. By the end of 2026, corresponding wallets are expected to be provided in all Member States and function interoperably across the EU. The wallet is intended to simplify digital interactions by replacing physical documents and enabling the management of digital credentials such as identity cards, driving licences, educational certificates or other credentials. In addition, it can be used to access online services such as public authorities or banks, provide proof of age and create digital signatures. Users retain full control over their data and can selectively prove individual personal attributes without disclosing their full identity or additional personal information.

European Business Wallet (EBW)

The European Business Wallet (EBW) transfers the concept of digital identity to legal entities. It can be understood as a type of business account. As a complement to the EUDI Wallet for individuals, it enables businesses and organisations to securely prove their identity and that of their representatives across the EU. It provides information such as certificates, licences, commercial register extracts and other company data in a structured, reusable and trustworthy way, eliminating the need to repeatedly submit the same information.

In addition, the EBW is intended to make processes such as account opening (KYC/KYB), document signing, administrative procedures and the management of Digital Product Passports more efficient. Businesses retain data sovereignty over what information they share and with whom. This is intended to simplify interactions between businesses and authorities (B2G) as well as between business partners (B2B).

As part of the EU Digital Identity Framework, authorities are expected to become obliged to accept these digital credentials in the future in order to support the secure exchange of data within digital ecosystems, such as supply chains and data spaces, and to implement complex regulatory requirements, for example in export control or cyber security, more efficiently.

Person Identification Data (PID)

Person Identification Data (PID), in the context of European Digital Identity, refers to the official, government-certified electronic identity data of a natural or legal person stored in the EUDI Wallet for the purpose of uniquely identifying them. PID forms the digital core of the wallet and represents the highest security level under the eIDAS 2.0 Regulation. PID must include first name, surname, date of birth, place of birth, nationality and a unique identifier. The data is stored in encrypted form directly on the user’s device.

Legal Entity Identifier

The Legal Entity Identifier (LEI) is a globally standardised 20-character code used for the unique identification of legal entities in financial markets. Within the context of the eIDAS 2.0 Regulation, the LEI serves as a key attribute for identifying companies within the European Business Wallet. While PID provides the government-verified base identity, the LEI enables international interoperability and supports the automation of compliance checks as well as traceability in global supply chains (e.g. within the Digital Product Passport).

Electronic Attestations of Attributes (EAA)

Electronic Attestations of Attributes (EAA) are digital credentials that confirm specific characteristics of a person or company. They contain additional facts linked to Person Identification Data, such as age, business licences, educational qualifications or powers of representation. Within the EUDI Wallet, they enable this information to be shared securely and selectively with third parties without disclosing the entire identity.

Attribute Delegation

Attribute Delegation is the process by which a legal entity (company) transfers specific permissions or credentials (EAAs) to a natural person (employee or representative). This enables individuals to act digitally and legally on behalf of the company, for example to sign contracts or submit customs declarations, without the company having to relinquish full control of its wallet. This reduces routine tasks through decentralisation while simultaneously increasing security and efficiency through the division of responsibilities.

III. Technical Concepts of Wallet Architecture

Self-Sovereign Identity (SSI)

Self-Sovereign Identity (“SSI”) is the principle on which the EUDI framework is based and follows the concept of user-centric, decentralised identity (Allen, 2016). In contrast to centralised identity solutions, SSI gives users, whether individuals or businesses, full control over their digital identities. These identities are managed locally within the wallet rather than by a central provider, enabling interactions without unnecessary intermediaries, which significantly improves both privacy and resilience.

Trust Framework

A Trust Framework defines common organisational rules through which trust, security and acceptance are established within a digital ecosystem. It defines the roles and responsibilities between different parties and ensures that all participants meet the same technical and operational requirements. Within the context of eIDAS 2.0, the Trust Framework is necessary to ensure that a digital credential issued in one Member State can be considered trustworthy in all other EU Member States without additional verification.

Interoperability

Interoperability refers to the ability of different systems and networks to work together seamlessly and exchange data efficiently. Based on common standards, it enables collaboration across technical and organisational boundaries within the EUDI ecosystem. For example, a digital identity issued in one EU Member State can be technically and semantically processed by systems in all other Member States. This prevents the creation of digital silos and is a prerequisite for seamless processes in cross-border supply chains and digital single markets.

Verifiable Credentials

Verifiable Credentials (VCs) are cryptographically secured, digitally verifiable credentials whose authenticity and integrity can be verified at any time. They are based on the World Wide Web Consortium (W3C) standard and enable interoperability, for example within the context of the EUDI Wallet. A VC allows the holder to selectively and machine-readably share specific information with third parties without requiring the issuer to be involved. Through selective disclosure, only the necessary information needs to be shared (e.g. proof of age instead of the full date of birth).

Decentralized Identifier

Decentralized Identifiers (DIDs) are a new type of identifier that can be created and managed without a central registration authority. They enable people, companies or objects to identify themselves independently and securely within digital systems and form the basis for the issuance and verification of Verifiable Credentials.

Public Key Infrastructure

Public Key Infrastructure (PKI) is the infrastructure surrounding cryptographic keys and certificates (e.g. issuance, revocation and trust chains). It enables the verification of credentials belonging to people or companies and allows data to be securely transmitted and signed.

European Blockchain Services Infrastructure

The European Blockchain Services Infrastructure (EBSI) is an initiative of the European Commission and the European Blockchain Partnership (EBP) that enables the secure and trustworthy exchange of data and credentials across borders. It is based on blockchain technology, or Distributed Ledger Technology (DLT), to manage information in a tamper-proof, traceable and decentralised way. EBSI connects nodes across 27 EU Member States as well as Norway and Liechtenstein, thereby enabling the secure and interoperable exchange of digital credentials, for example for identities or educational certificates. The infrastructure is currently transitioning from the pilot to the production phase.

IV. Stakeholders in the Ecosystem

Trust Triangle

The so-called “Trust Triangle” describes the fundamental trust model of the European Digital Identity Ecosystem and forms the basis for the functioning of EUDI and European Business Wallets. It defines the roles and interactions between three central actors: the Issuer, the Holder and the Verifier or Service Provider. The objective of this model is to enable digital credentials to be exchanged securely, interoperably and trustworthily within the EU.

The Issuer is a trusted organisation, such as a public authority or commercial register, that verifies and issues digital credentials. These credentials are stored as Verifiable Credentials in the Holder’s wallet. The Holder, meaning the individual or company, independently manages these digital credentials within the wallet and decides what information is shared with third parties. The Verifier, for example a bank, regulatory authority or business partner, confirms the authenticity and validity of the provided information in order to deliver a service, such as within KYC/KYB processes, contract signing or administrative procedures.

Wallet Provider

Wallet Providers provide EUDI and European Business Wallet applications on behalf of Member States and ensure technical support as well as compliance with European security and interoperability requirements. Spherity is a provider of the European Business Wallet.

Qualified Trust Service Provider (QTSP) & Trust Services

Trust services enable secure and legally binding electronic interactions, for example through electronic signatures, seals, timestamps or authentication certificates, and are based on the eIDAS Regulation. Qualified Trust Service Providers (QTSPs) are eIDAS-certified trust service providers that offer these services under particularly high security and compliance requirements. They are authorised to issue qualified electronic signatures and seals that have the same legal status as handwritten signatures within the EU. Within the context of the European Business Wallet, QTSPs therefore form a central trust infrastructure for the issuance, signing and verification of digital credentials.

V. Business Applications

The applications of the European Business Wallet range from Business-to-Government (B2G) interactions, such as tax, registration or compliance processes, to Business-to-Business (B2B) applications such as KYx procedures, contract signing or supply chain management. The following applications are examples of how the wallet can enable trusted digital business processes:

KYC (Know Your Customer)

Know Your Customer (KYC) refers to customer identity verification processes, particularly in the financial sector and regulated services. The objective is to prevent fraud, money laundering and terrorist financing. With the European Business Wallet, identity and credential data can be securely, digitally and repeatedly provided as Verifiable Credentials, making KYC processes more efficient and interoperable across borders.

KYB (Know Your Business)

Know Your Business (KYB) extends the KYC principle to companies and serves to verify legal entities and their beneficial owners. This includes, for example, checking commercial register data, powers of representation or compliance credentials.

KYS (Know Your Supplier)

Know Your Supplier (KYS) describes the verification of supplier identities, certifications and regulatory requirements. Through the European Business Wallet, this information can be verified in a standardised, machine-readable and cross-border manner, improving transparency and compliance within supply chains.

Qualified Electronic Signature & Qualified Electronic Seals

The Qualified Electronic Signature (QES) is an eIDAS-certified electronic signature with the same legal effect as a handwritten signature and enables secure, legally binding and interoperable business processes across the EU. Qualified Electronic Seals (Q-Seals) work according to a similar principle but are used by legal entities to prove the origin and integrity of digital documents.

Digital Product Passport

The Digital Product Passport is a digital data set containing information on the origin, materials, sustainability and regulatory requirements of a product. The European Business Wallet enables this data to be exchanged in a standardised, trustworthy and interoperable manner across supply chains.

Data Spaces and Ecosystems

Another important aspect is industry-specific data spaces in which companies can exchange trusted credentials, product data and compliance information in a standardised way. One example is the WE BUILD Consortium, which brings together more than 180 organisations from 26 countries, including commercial registers, banks, authorities, wallet providers and technology companies such as Spherity.