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For decades, proving that a company is legitimate, solvent, and authorized to trade has been a bureaucratic nightmare. It usually involves chasing down stamped papers from trade registers, notarizing documents, and mailing physical copies across borders. It is slow, expensive, and frustratingly analog.
The European Commission is aiming to change this dynamic entirely. Following the path of the European Digital Identity (EUDI) Wallet for citizens, a new proposal was introduced in November 2025 to establish European Business Wallets.
This isn't just a minor software update; it represents a fundamental shift in how companies interact with governments and other businesses. According to the European Commission, 55% of SMEs recognize administrative burden as a major hurdle, with businesses currently devoting up to 2.5% of turnover on manual compliance tasks. The proposal estimates this shift could unlock at least €160 billion in annual savings for businesses by cutting administrative red tape. But what exactly is a Business Wallet, and how will it change your daily operations? This guide breaks down the essentials of this emerging technology.
Think of the EU Business Wallet as a digital briefcase that is legally recognized across all EU Member States. Just as the EUDI Wallet allows individual citizens to store their ID cards and driving licenses on their phones, the Business Wallet holds the "identity" of a company.
However, unlike a standard PDF storage app, the Business Wallet is an active communication tool. It allows a company to:
A crucial aspect of how this works is the connection to the individual user. A company cannot "act" by itself; a human must operate the wallet.
This is where the Person Identification Data (PID) comes in. The PID is the core set of data (name, date of birth, unique identifier) stored in an individual's personal EUDI Wallet. To access the Business Wallet, an authorized representative uses their personal PID to authenticate themselves. This creates a secure, unbreakable chain of trust: the system knows exactly who signed a document and verifies they had the authority to do so.
The architecture of these wallets relies on a concept called "technological neutrality." The EU isn't mandating a single software provider; instead, they are setting strict standards and protocols that providers must follow.
Verifiable Attestations
The engine powering these wallets is the exchange of attestations. An attestation is a digital proof of a specific fact. In the paper world, this is a certificate stamped by a chamber of commerce. In the digital wallet, it is a piece of code signed by a "Qualified Trust Service Provider."
There are generally two types of attestations a Business Wallet might hold:
Trust Anchors
For the system to work, you need to trust the source. The proposed regulation ensures that Business Wallets connect to official sources—like national trade registers. When you share your company details from the wallet, the recipient doesn't just trust you; they trust the digital signature of the government body that issued the data to your wallet in the first place.
The theory sounds promising, but the value lies in the application. Here is how the EU Business Wallet is expected to transform specific business functions:
"Know Your Customer" (KYC) processes currently take days or weeks. With a Business Wallet, a company can provide verified identity data and ownership structures instantly. Banks and financial institutions can verify this data automatically against public registers, potentially reducing onboarding time from weeks to minutes.
Bidding for government contracts is notoriously paper-heavy. The Business Wallet allows a company to store "pre-verified" credentials. When a tender opportunity arises, the company can submit its proof of solvency, lack of criminal record, and insurance status digitally. The proposal mandates that all levels of public administration across the EU, including EU institutions, bodies and agencies, will have two years to support the use of the Business Wallets.
As regulations around sustainability tighten, companies must track the lifecycle of their products. The Business Wallet can link to Digital Product Passports (DPP). This allows a retailer to verify not just the supplier's identity, but also the certifications of the goods they are buying (e.g., organic, fair trade, or carbon footprint data) directly through the wallet infrastructure.
For companies operating in multiple EU countries, handling VAT and e-invoicing is complex. The wallet provides a standardized way to share tax identification numbers and verify the status of a trading partner in another country, reducing VAT fraud and simplifying reporting.
Because this technology sits at the intersection of law, cryptography, and business, confusion is common. Let's clear up a few myths.
Myth 1: "This exposes all my business data to the public."
Reality: The system is built on the principle of selective disclosure. You control exactly what data you share and with whom. If a partner only needs to know that your company is VAT registered, you can share that specific attribute without revealing your entire corporate structure or financial history.
Myth 2: "It's only for large corporations."
Reality: SMEs and microenterprises make up 99% of enterprises in the EU, and they stand to benefit the most. Large corporations have legal teams to handle paperwork; SMEs do not. The Business Wallet democratizes access to cross-border trade by removing the cost barrier of proving your legitimacy in a foreign market.
Myth 3: "Any software company can build one."
Reality: The security requirements are incredibly high. The proposal stipulates that providers of EU Business Wallets must be European companies and cannot be under the control of non-EU entities. This ensures digital sovereignty and data protection under GDPR. The European Commission will publish a Trusted List of Business Wallet Providers, and supervision is ensured by national eIDAS supervisory bodies.
The practical development of Business Wallets is actively underway. The WE BUILD Consortium officially launched in September 2025 and brings together more than 180 organizations from 26 countries, including 13 National Business Registers, tax authorities, banks, financial institutions, wallet providers, and technology companies.
With a total budget of approximately €25 million, WE BUILD is now in its active phase and will run for 24 months (through September 2027), deploying 13 high-impact use cases to develop production-ready solutions. These use cases include streamlining Know Your Customer/Business/Supplier/Employee (KYx) processes, company representation and signing on behalf of organizations, branch creation abroad, and cross-border document exchange.
The financial case for Business Wallets is compelling. The European Commission estimates that simplification efforts will save up to €5 billion in administrative costs between now and 2029. However, the long-term potential is even more significant.
According to the Staff Working Document, the annual cost-savings potential that European Business Wallets can bring from replacing all manual processes with streamlined digital processes, once fully adopted, is €225 billion. For individual businesses, SMEs currently estimate spending an average of €10,000 and 14.4 weeks on the entire administrative procedure when expanding abroad, which could be reduced by 53% in costs and 44% in time (saving 6.4 weeks per expansion).
The regulatory process is moving forward rapidly. After adoption by the European Parliament and Member States, public administrations will have specific deadlines to implement support for Business Wallets.
By December 2026, EU Member States must provide EUDI Wallets and PID under the eIDAS regulation, and by December 2027, regulated industries will be required to accept EUDI Wallets for Strong Customer Authentication.
Companies will not be obliged to use the European Business Wallets. The regulation places obligations solely on public sector bodies to accept its core functions, while companies remain free to decide whether to adopt the wallets for their commercial operations or interactions with public authorities.
The proposal for European Business Wallets marks a turning point in the digital single market. By moving from physical stamps to cryptographic proofs, the EU aims to create a business environment where trust is automated and instant.
By representing one unique digital identity and a single channel of correspondence with governments across the EU, businesses will have 26 times less hassle when operating everywhere in the EU. Any actions, including critical ones, can be done remotely at any time, and all actions requiring paperwork are digitalized, which is equivalent to performing actions in person.
While the regulation is still moving through legislative channels, the direction of travel is clear. Digital identity is no longer just about logging into a website; it is about the fundamental legal existence of your business in the digital economy.
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