Facing the Challenges of the European Business Wallet

Published Date : 9/23/2025 

The European Business Wallet (EUBW) aims to streamline business-to-business (B2B) and business-to-government (B2G) interactions, but faces significant technical and regulatory hurdles. Industry experts and officials highlight the complexity and potential benefits of the project. 

The development of the European Business Wallet (EUBW) is far more complex compared to the EU’s digital identity for individuals, and poses several implementation challenges, according to industry experts and officials.

The EUBW aims to provide legal entities across the EU with standardized digital identities to streamline business-to-business (B2B) and business-to-government (B2G) interaction. It is also designed to cut costs: According to research from the European School of Management and Technology in Berlin, German companies could almost completely cut costs for Know Your Supplier master data maintenance, amounting to 85 billion euros (US$100.2 billion) a year.

However, the system must accommodate not only private companies but also public organizations such as universities and government ministries, Lorène Slous, a consultant for trust services and digital identities at the digital association Bitkom, told Table.Media. Countries such as Germany have diverse organizational structures that do not always count as legal entities. Its registry system is fragmented and encompasses commercial registers, cooperative registers, association registers, and partnership registers – each with different technical requirements, points out Diana Campar, associate director at the Banking Association.

Another issue involves data integration. While individual citizens can use their ID cards with eID functions, organizations lack a similarly straightforward method. The EU will standardize the wallet format, but member states must independently develop systems for inputting organizational data, according to Campar.

The project has also sparked debate over public versus private. While some advocate for multiple providers to encourage competition, European Parliament member Tiemo Wölken (Social Democratic Party of Germany, SPD) argues that authentication services should remain a government responsibility to prevent fragmentation and potential data monopolies.

One thing everyone agrees on is including all stakeholders in the discussion. “SMEs should be involved at an early stage via pilot projects, test environments, and funding programs,” says Andreas Schwab, internal market policy spokesperson for the EPP group.

The launch of the EUBW is planned for the end of 2026, but its development has just started. The European Commission is yet to release detailed specifications or technical requirements, which will differ from the European Digital Identity (EUDI) Wallet. The Commission is expected to present a proposal at the end of the year.

A group of researchers has provided insight into how the European Business Wallet might look from a technical perspective. They have outlined six key functions for the digital system. The proposed wallet would work alongside the EUDI Wallet to support business-to-customer transactions. It would act as a “Wallet-Relying Party” and use access certificates through established digital protocols like OID4VP and DIDComm.

The system would also request necessary access certificates and other required documentation, such as Legal Person Identity (LPID) certificates, while connecting with approved trust service providers. Researchers hope the wallet could eventually be used for electronic government services once “EU Government Wallets” are developed with standardized interfaces and up-to-date technical standards.

The business wallet would enable secure electronic transactions between different business wallet users and integrate smoothly with existing business IT systems and services. Finally, it would support business-to-employee processes involving company staff. The research paper was presented at the Open Identity Summit 2025, organized by the University of the Bundeswehr Munich, Germany and ITIS e.V. 

Frequently Asked Questions (FAQS): 

Q: What is the European Business Wallet (EUBW)?

A: The European Business Wallet (EUBW) is a digital identity system designed to provide legal entities across the EU with standardized digital identities to streamline business-to-business (B2B) and business-to-government (B2G) interactions.

Q: What are the potential benefits of the EUBW?

A: The EUBW aims to cut costs for businesses, particularly in maintaining Know Your Supplier (KYS) master data. It could potentially save German companies up to 85 billion euros (US$100.2 billion) a year.

Q: What are the main technical challenges in implementing the EUBW?

A: The main technical challenges include accommodating diverse organizational structures, fragmented registry systems, and the need for data integration. Organizations lack a straightforward method for using ID cards with eID functions, unlike individual citizens.

Q: What is the debate over public versus private providers in the EUBW project?

A: There is a debate over whether authentication services should be provided by the government or multiple private providers. Some argue for competition to encourage innovation, while others believe government responsibility is necessary to prevent fragmentation and data monopolies.

Q: When is the EUBW expected to launch?

A: The launch of the EUBW is planned for the end of 2026, but its development has just started. The European Commission is expected to release detailed specifications and technical requirements by the end of the year. 

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