During one of our recent webinars, Esther Makaay, VP of Digital Identity at Signicat, shared key learnings from two years of real-world testing carried out through the EU Digital Identity Wallet Consortium (EWC).
This session focused on what the Large-Scale Pilots have already demonstrated in one of the most critical use cases: payments.
Below are the key insights Esther highlighted:
Payments with the EUDI Wallet Are Technically Feasible Today
The pilots confirmed that payments using the EUDI Wallet can already be executed in production environments.
Tested scenarios included:
- Online and in-store payments
- Card-based and account-to-account transactions
- PSD2-compliant authentication flows
- Identity-linked payment verification
In total, the consortium executed:
- 49 bank-led production transactions, where the bank controlled the payment flow and the wallet was used as an alternative way for users to authenticate instead of their usual banking app or OTP.
- 12 merchant-captured fast-checkout transactions, where the merchant initiated the payment and the wallet was used to present both payment credentials and identity data as part of a single checkout flow.
These transactions involved real banks, real money flows, and live payment infrastructures, demonstrating that the concept is not theoretical but operational.
Clear Link Between Identity and Fraud Reduction
Esther highlighted that in markets where identity verification is already closely integrated with payments, measurable fraud reduction has been observed.
In Scandinavian countries, where national eIDs and bank-based identity systems are more mature, combining identity and payments has led to fraud reductions of 96–98%.
This indicates the potential impact of applying similar models through the EUDI Wallet framework.
User Experience Shows Promise, But Is Not Yet Seamless
User feedback from the pilots revealed strong early signals of usability:
- 80% of participants found wallet-based fast checkout easier than traditional banking checkout.
- A slight majority preferred wallet authentication over standard bank authentication flows.
However, Esther also noted that current technology does not yet support the seamless experience users expect. Today’s flows often involve app switching and still require improvement to reach mainstream consumer standards.
Liability and Legal Clarity Remain Unresolved
A key point raised during the presentation was the lack of clarity around liability, particularly in payment scenarios.
Current regulations do not yet clearly define:
- Who is liable when wallet-based payment authentication fails
- How responsibility is shared between banks, wallet providers, and relying parties
- How outsourcing rules for Strong Customer Authentication apply to wallet usage
This lack of legal certainty was described as a critical hurdle, especially for financial institutions considering broader adoption.
Combining Payments and Attestations Unlocks New Use Cases
The pilots also explored the possibility of combining payments with identity-based attestations. Examples included:
- Issuing receipts directly into the wallet after payment
- Providing boarding passes or ferry tickets as verifiable credentials
- Linking identity attributes to specific transactions
These use cases demonstrate how payments can become part of a broader identity-enabled interaction rather than a standalone process.
Summary: What We Know So Far
From the EWC Large-Scale Pilots, the following conclusions can be drawn:
- Payments via the EUDI Wallet are already possible in production settings
- Identity-linked payments show strong potential for fraud reduction
- User feedback is promising but highlights areas for improvement
- Liability frameworks require further clarification
- Combining payments and identity data opens up new service models
These findings provide a grounded view of where the ecosystem stands today and what areas will require continued focus as the 2026 EUDI Wallet deadline approaches.
