The European Commission is introducing the European Digital Identity Wallet (EUDIW) to provide EU citizens with a secure, interoperable means to store and share verified identity data across the Union. The wallet aims to create a thriving single digital market, foster trust, and drive cross-border commerce by establishing a harmonised electronic identification ecosystem. For retailers, embracing the EUDIW presents significant opportunities to grow both top-line and bottom-line revenue.

The EUDIW offers several avenues for retailers to increase top-line revenue

Increased cart conversion

The wallet's seamless authentication experience, with a common user interface and no redirects, can significantly increase shopping cart conversion rates and reduce abandonment. Enabling auto-fill of verified customer details at checkout could help combat the nearly 70% average cart abandonment rate.

Enhanced personalisation

The EUDIW allows retailers to access rich, verified customer data with user consent, which can enable highly targeted marketing, personalised offers, and seamless loyalty enrolment to attract and retain high-value customers.

Cross-border growth

The EUDIW's interoperability opens up new markets for retailers. With a trusted EU-wide identity solution, retailers can confidently sell cross-border, driving incremental revenue. Cross-border ecommerce in Europe is forecast to surpass €200 billion by 2025.

Innovative payment experiences

Integrating digital identity and payment credentials in a single wallet is a strategic move to enhance the payment ecosystem. From enabling delegated authentication for PSD2 compliance to paving the way for digital euro payments, the EUDIW can unlock new revenue streams for innovative retailers.

Beyond growing revenue, the EUDIW presents significant cost-saving opportunities

Streamlined onboarding

Leveraging the wallet's verified identity data, retailers can automate customer onboarding and KYC checks, reducing manual processing costs. The EUDIW could slash the average cost to onboard a new customer, which can reach €150 for regulated industries, by more than 50%.

Fraud prevention

With access to authenticated customer details, retailers can more effectively prevent costly fraud which could exceed €25 billion in Europe by 2025. The EUDIW can help identify suspicious transactions and customers, reducing fraud losses and manual review costs.

Efficient operations

The wallet's verified data can automate age verification for restricted goods, simplify warranty registrations, and streamline other identity-dependent processes. Digitising customer registration could save EU retailers over €10 billion annually by 2025.

Reduced compliance costs

The EUDIW provides a clear framework for handling customer identity data, helping retailers avoid GDPR non-compliance fines which can reach 4% of global revenue. The wallet could reduce identity-related compliance costs by up to 30%.

The European Digital Identity Wallet is a powerful tool for retailers to boost both top-line and bottom-line performance. By enabling seamless experiences, preventing fraud, and fostering trust, the EUDIW can drive significant revenue growth and cost savings. As the EU's single digital market evolves, retailers that swiftly embrace the wallet and harness its potential will be best positioned to thrive through its trust and convenience benefits from 2027 onwards.

Reach out for a discussion with me and the team at Nua Léargas. We can help your organisation make sense of and respond to the European Digital Identity Wallet.