EU Regulation on European Business Wallets

Management Summary: The European Business Wallet (EUBW)

The introduction of the European Business Wallet marks the transition to the Digital Single Market 2.0. Based on the eIDAS 2.0 Regulation, the EU is creating a unified infrastructure for companies’ digital identity that goes far beyond a purely technical innovation.

• Strategic Core Value: Digital corporate identity becomes the central resource for legally binding, cross-border transactions without media breaks.

• End of Fragmentation: The EUBW breaks down national silos. Companies can use proof (commercial register, tax IDs, powers of attorney) uniformly across all 27 EU states.

• Strong Acceptance Obligation: All public authorities in the EU are obliged to support the EUBW within 24 months of its entry into force – a massive lever for state modernization.

• High Efficiency Gain: By automating KYC processes and mandate checks, the EU Commission expects an annual benefit of over €42,000 for SMEs and a significant reduction in administrative burdens.

• Full Data Sovereignty: The Once-Only Principle and selective disclosure ensure that companies retain control over their sensitive business data.

• Liability & Governance: For boards of directors and managing directors, the correct implementation and recording of representation powers becomes a critical leadership task within the framework of digital compliance.

The European Business Wallet (EUBW) marks a decisive step in the digital transformation of the European economic area. With the proposal for a regulation to establish the European Business Wallets, presented by the EU Commission on November 18, 2025, the European Union is sending a clear signal for the modernization and simplification of companies’ digital identity. The aim is to facilitate the digital identification and authentication of companies across the EU and to elevate the interaction between companies, authorities and public administrations to a new, digital level.

The EUBW is designed as a uniform, electronic tool that enables companies in all 27 EU member states to digitally sign documents, securely store and exchange verified documents such as commercial register extracts, tax IDs, licenses or representation certificates, and communicate directly with public administrations. This makes companies’ digital identity not only legally secure but also usable across borders—a key advantage for anyone operating in the European Single Market.

At the heart of the EU Commission’s proposal is the creation of a standardized and trustworthy framework for companies’ digital identity. The European Business Wallet is closely linked to the eIDAS 2.0 Regulation, which regulates electronic identification and trust services in Europe. Through the EUBW, economic participants will be able to manage digital proofs in a secure form and use them for various business processes and interactions with authorities. The wallet not only supports compliance with regulatory requirements but also promotes the efficiency and competitiveness of European companies.

Use of the EUBW is voluntary, but the EU Commission aims to establish the Business Wallet as a standard tool for secure and efficient exchange between companies and authorities. Companies thus have the opportunity to centrally manage their digital identity, accelerate processes and simplify interaction with administrations and business partners. The introduction of the EUBW is thus an essential step in driving the digital transformation in the European economic area and sustainably strengthening the competitiveness of the European economy.

With the European Business Wallet, the EU Commission is laying the foundation for a modern, digital and interoperable corporate identity that meets the requirements of a connected, digital single market. Companies that adopt this innovative solution early secure not only an efficiency advantage but also position themselves as pioneers in Europe’s digital economy.

Previous manual KYC processes, paper-based documents, and incompatible national portals have slowed down cross-border trade. The EUBW breaks down these silos and offers a tailored solution for various industries to make business activities, digital transactions, and regulatory compliance more efficient.

• Interoperability: A unified framework for all 27 EU member states that allows seamless collaboration of wallets with national systems and the EUDI wallet for citizens.
• Mandatory Acceptance: Public authorities must support the wallet within 24 months of entry into force, significantly simplifying the digitization of services and interaction with authorities.
• Competitiveness: Reduction of administrative burdens that currently consume up to 2.5% of revenue in SMEs.

The use of the European Business Wallet enables companies to conduct secure, cross-border transactions, use digital services, and exchange legally valid proofs with administrations and business partners. The wallet is voluntary for companies but is intended to establish itself as the standard for efficient and secure exchange with authorities and in the B2B environment. National regulations remain unaffected, allowing companies to continue to meet legal requirements and digitize their business activities.

The EU Commission plays a key role in introducing the European Business Wallet (EUBW) and the EUDI wallet. With the current draft regulation, the Commission aims to fundamentally simplify the digital identity and interaction of companies in the European Single Market. The EU Commission’s proposal for the EUBW is a central step to reduce bureaucratic hurdles and sustainably strengthen the competitiveness of companies in Europe.

In close collaboration with the member states and the private sector, the Commission is working on developing uniform technical standards and requirements for the EUBW. This will create a digital identification tool usable across Europe that enables companies to exchange documents and proofs securely and standardized. The EUBW is intended to serve as a central tool to handle administrative processes and interactions with authorities in digital form.

The EU Commission places special emphasis on adhering to the highest data protection and security standards. The regulation ensures that the European Business Wallet is not only reliable and user-friendly but also designed to comply with data protection regulations. This protects companies’ digital identity and enhances trust in digital solutions.

With the introduction of the EUBW, the Commission is consciously driving the digital transformation of the European economy. The EUBW is an important building block to modernize the EU Internal Market and facilitate companies’ access to digital online services. At the same time, communication between companies and authorities is made more efficient and transparent.

To comprehensively inform companies and economic participants, the EU Commission provides detailed information on the EUBW, the EUDI wallet, and the eIDAS 2.0 Regulation on its official channels. Here, use cases, benefits, and the significance of the new digital identity solutions for the European economic area are clearly explained. This helps the Commission support companies in making the most of the opportunities of digital transformation and positioning themselves securely for the future.

The EUBW is far more than a digital copy of an ID card. It is based on a technical approach that focuses on data protection, security, and interoperability to ensure compliance with the relevant articles of the EU regulation. It is a multifunctional tool for legally binding digital business transactions and serves as a digital wallet for companies, citizens, and individuals where important documents, identity data, and powers of attorney are securely stored and managed.

Companies and public institutions need to make complex technical and organizational adjustments to meet the new standards and regulations. The EUBW enables economic participants to carry out their business activities and transactions reliably, legally secure, and digitally.

The introduction of the EUBW is a central component of the Digital Decade of the EU. The Federal Ministry of the Interior (BMI) in Germany coordinates and manages the establishment, planning, and implementation of the European Business Wallet (EUBW) in collaboration with other relevant bodies. Companies and administrations must undertake complex technical and organizational adjustments to meet the new regulations and articles of the EU regulation as well as the requirements of the revision. This particularly concerns compliance with the legal framework conditions and the integration of the wallet into existing systems. The EUBW respects existing law and does not make any changes to the fundamental legal requirements for contract conclusions or form requirements but complements the existing legal structures. The possibility of using the wallet extends to different industries, services, and economic participants, ensuring flexible use in different sectors and application cases. The EUBW enables the digitalization of business activities and administrative processes, including the integration of powers of attorney and the secure handling of transactions in the European Single Market.

1. From Passive User to Active Shaper: Companies must decide how to integrate the wallet into their ERP and CRM systems.
2. Liability & Mandate Verification: Correct recording of representation powers in the wallet becomes a business-critical task.
3. Cost Efficiency: While implementation requires investments, the annual net benefits, according to the EU Commission, are up to €42,000 per SME.

The EU Commission’s cost-benefit analysis makes it clear why the Business Wallet is not a “nice-to-have” but an economic lever.

The European Business Wallet is relevant for economic participants from all sectors and addresses the specific requirements of freelancers, sole proprietors, and legal entities.

It enables the digitization of services, transactions, and administrative processes, making business operations more efficient and simplifying interaction with administrations.

By using the wallet, companies can digitally sign documents, communicate securely with public administrations, and at the same time ensure compliance with national and European regulations.

The EU aims, with the introduction of the wallet, to reduce administrative burdens for economic participants and strengthen the cross-border use of digital identities in the European Single Market.

The EUBW will not exist in isolation. It closely aligns with other EU initiatives and builds on the revision of the eIDAS Regulation, which drives digitalization and state modernization in the public sector and places the establishment of European Business Wallets at the center. In the background, the goal is to provide a unified electronic tool with the EUBW that enables the use and integration of services, documents, signatures, powers of attorney, and transactions in companies’ business activities and exchanges with administrations across all industries. The wallets will seamlessly cooperate with national systems and the EUDI wallet for citizens, providing economic participants and companies the opportunity to efficiently comply with regulations and simplify administrative processes. The Federal Ministry of the Interior coordinates the implementation and ensures compliance with the relevant articles and regulations.

• BRIS & BORIS: Integration of commercial and transparency registers.
• Digital Product Passport: Proof of sustainability attributes in the supply chain.
• ViDA (VAT in the Digital Age): Simplification of VAT reporting obligations.