The European Union is entering a decisive phase of digital transformation with the introduction of EUDI Wallets under the eIDAS 2.0 regulation. More than just a compliance measure, the European Digital Identity (EUDI) Wallet is reshaping digital identity management across Europe. For businesses, this means not only adhering to regulations but also gaining a competitive edge by offering faster onboarding, stronger security, and cross-border interoperability.

With projections showing more than 169 million EUDI Wallets in use by 2026, companies that begin their wallet development journey today will be better positioned to lead Europe’s digital economy tomorrow. Let’s dive into the step-by-step EUDI wallet app development process that businesses can follow to build secure, compliant, and user-friendly digital identity platforms.

What is an EUDI Wallet App?

The EUDI Wallet App is a digital container designed to securely store and share Verifiable Credentials (VCs) issued by trusted authorities. These credentials have the same legal recognition as physical IDs and are accepted across all 27 EU member states.

Key Capabilities:

1. Store official identity documents like ID cards, driver’s licenses, health records, and academic diplomas.

2. Leverage Zero-Knowledge Proofs (ZKPs) to allow selective data sharing.

3. Support Qualified Electronic Signatures (QES) for legally binding digital transactions.

4. Enable businesses to verify customer identity instantly in a GDPR-compliant manner.

The EUDI Wallet is not just another ID app—it is a legally recognized gateway to seamless cross-border services.

How Does an EUDI Wallet App Work?

The system follows a trust triangle model with three key roles:

1. Issuer: Governments, universities, and banks issue cryptographically signed verifiable credentials.

2. Holder: The user stores credentials in their wallet and shares them when required.

3. Relying Party: Businesses or services that need to verify user identity, such as banks, online portals, or mobility providers.

Typical Workflow:

1. Service Request: The user applies for a service (e.g., opening a bank account).

2. Data Request: The bank requests specific credentials, such as proof of age or residency.

3. User Consent: The user consents to share minimal required data using selective disclosure.

4. Verification: Credentials are verified instantly by checking cryptographic signatures against EU’s trusted issuers list.

5. Outcome: The interaction is secure, compliant, and legally recognized across the EU.

Step-by-Step EUDI Wallet App Development Process

Step 1: Align with eIDAS 2.0 and ARF

The foundation of an EUDI Wallet app lies in strict alignment with eIDAS 2.0 regulations and the Architectural Reference Framework (ARF). This guarantees full interoperability and ensures future-proof compliance with EU mandates.

Step 2: Build a Secure Identity Infrastructure

1. Use Secure Elements (SEs) or Trusted Execution Environments (TEEs) to protect user data.

2. Employ Hardware Security Modules (HSMs) for cryptographic key generation and secure storage.

3. Implement Public Key Infrastructure (PKI) to establish verifiable trust chains.

Step 3: Integrate Verifiable Credentials & Decentralized Identifiers

1. Incorporate W3C Verifiable Credentials (VCs) for tamper-proof digital proof.

2. Use Decentralized Identifiers (DIDs) for user-managed identity.

3. Support issuance of academic diplomas, financial proofs, health records, and professional certifications.

Step 4: Enable Selective Disclosure & Zero-Knowledge Proofs

1. Allow users to prove attributes like age or citizenship without revealing unnecessary details.

2. Integrate zk-SNARKs and zk-STARKs libraries for privacy-first cryptographic verifications.

Step 5: Ensure Cross-Border Interoperability

1. Adopt OpenID for Verifiable Credentials (OID4VC) for EU-wide compatibility.

2. Test interoperability with European Large-Scale Pilots to ensure seamless cross-country operation.

Step 6: Design Intuitive User Experience

1. Develop transparent and user-friendly consent flows.

2. Support offline verification for scenarios like airport security or event entry.

3. Integrate multilingual interfaces for pan-European accessibility.

Step 7: Certification & Accreditation

1. Work with regulatory bodies to achieve Qualified Trust Service Provider (QTSP) status.

2. Conduct rigorous security audits to validate technical and legal compliance.

Step 8: Enable Qualified Electronic Signatures

1. Integrate QES functionality into the wallet.

2. Ensure businesses and individuals can sign legal documents online with full EU recognition.

Step 9: Implement Ongoing Compliance & Updates

1. Continuously monitor EU regulations for changes.

2. Deliver software updates and integrate new standards as they evolve.

3. Maintain strong security patches to protect credentials from emerging cyber threats.

Business Benefits of EUDI Wallet Apps

Faster KYC and Onboarding

1. Drop verification times from days to under 2 minutes.

2. Boost customer conversions by eliminating friction in identity checks.

Fraud Prevention

1. Tamper-proof, government-backed credentials reduce fraud instances by over 90%.

Lower Compliance Costs

1. Automate KYC and AML compliance checks, cutting costs by up to 70%.

Expansion Opportunities

1. One integration opens access across 27 member states, enabling cross-border scalability.

New Revenue Streams

1. Businesses can introduce Identity-as-a-Service (IDaaS) solutions for third parties.

2. EUDI Wallet integration can power new services in finance, healthcare, and mobility.

Common Challenges in EUDI Wallet App Development

Compliance Complexity

Navigating eIDAS 2.0 and ARF requirements can be overwhelming. To overcome this, businesses should engage experts who specialize in certification and audits.

High-Security Needs

With Level of Assurance (LoA High) requirements, wallets must withstand sophisticated attacks. Secure, multi-layered infrastructure is critical.

Interoperability Issues

Different EU member states may adapt wallets slightly differently. Early and proactive real-world interoperability tests can resolve edge-case challenges.

Tools and APIs for EUDI Wallet Development

1. Identity Standards: OpenID Connect, OID4VC, and W3C VC libraries.

2. Cryptography: zk-SNARKs, zk-STARKs, PKI systems.

3. Secure Hardware: Trusted Execution Environments, Secure Elements, HSMs.

4. Integration APIs: KYC APIs, payment gateways (Stripe, PayPal, SEPA), and document verification (Jumio, Onfido).

Real-World Use Case: Bank Onboarding Transformation

A European bank faced expensive, manual onboarding with high drop-off rates. By integrating the EUDI Wallet, they achieved:

1. Onboarding time reduced from days to 2 minutes.

2. 70% reduction in KYC costs.

3. Fraud risk close to zero through cryptographically signed credentials.

4. Access to customers across all EU states with one solution.

5. Enhanced trust and customer satisfaction with a privacy-first system.

FAQs

How does an EUDI Wallet differ from other ID apps?

Unlike standard digital ID apps, EUDI Wallets are legally equivalent to physical IDs and comply with strict EU regulations under eIDAS 2.0.

Can private companies build EUDI Wallets?

Yes, private companies can develop EUDI Wallet applications but must undergo certification to ensure they meet EU’s compliance and security requirements.

Which technologies ensure security in EUDI wallets?

EUDI Wallets use Zero-Knowledge Proofs, Secure Elements, Hardware Security Modules, and Verifiable Credentials to offer the highest level of cryptographic and operational security.

Are EUDI Wallets mandatory?

Yes, by 2026 all EU member states must provide at least one wallet, and by 2027 large online platforms and businesses must accept them.

Conclusion

Building an EUDI Wallet App is no longer optional—it’s a necessity for businesses that want to remain relevant in Europe’s rapidly changing digital identity ecosystem. By following a step-by-step wallet app development process, organizations can not only achieve eIDAS 2.0 compliance but also enjoy faster onboarding, reduced fraud, scalable cross-border services, and new business models.

With expertise in digital identity, blockchain, and AI app development, Idea Usher helps businesses navigate compliance, design secure infrastructure, and create seamless EUDI Wallet solutions.

For businesses looking to lead the future of digital identity, discover our complete guide here: Step-by-Step EUDI Wallet App Development Process.