In a recent webinar, we spoke with Marie Austenaa, Payment Domain Lead for the EUDI Large Scale Pilots and Head of Digital ID at Visa, about how the European Digital Identity Wallet could impact banking and payments.
One phrase from the discussion captured the opportunity clearly: Marie described the EUDI Wallet as “a present on a silver plate for banks.”
Not because it removes complexity, but because it addresses one of banking’s most persistent challenges at its source.
The EUDI Wallet is designed as a consumer-held wallet that can store government-issued, verified identity credentials. These credentials are intended to reach the highest level of assurance and carry legal equivalence to in-branch identity checks. For banks, this directly affects regulated activities where identity assurance is critical.
Account opening, AML compliance, contract signing, and step-up authentication all depend on reliably knowing who the customer is.
Today, banks repeatedly rebuild this trust using fragmented, country-specific processes. The wallet introduces the possibility of relying on a shared, trusted identity foundation instead.
Banking and Payment Use Cases Likely to Benefit First
From the pilots and discussions Marie referenced, several banking and payments use cases stand out as early beneficiaries:
Account opening and onboarding
Opening a bank account remains one of the most regulated and risk-sensitive interactions. A high-assurance, government-issued digital identity could simplify onboarding flows, including cross-border scenarios, while maintaining regulatory confidence.
Contract signing and product applications
The wallet supports legally binding digital signatures, enabling users to open accounts, request new cards, apply for loans, or sign mortgage agreements using a familiar PIN or biometric flow.
Login and step-up authentication
Rather than relying on passwords, SMS OTPs, or multiple authentication apps, banks can use the wallet as a standardized cryptographic authentication method for access and sensitive account changes.
Payment-related verification
The wallet can be used to authenticate high-risk transactions, set up new direct debits, or verify that a payment recipient is who they claim to be. This is particularly relevant for reducing fraud driven by social engineering, without requiring direct integrations between banks.
These use cases do not remove the need for banks to update internal processes, modernize infrastructure, or adjust risk models. But they shift where trust is established, from repeated, institution-specific checks to a reusable, verified digital identity layer.
As pilots continue and national wallets roll out, these early use cases are likely to shape how banks and payment providers engage with the EUDI Wallet in practice.
