Regulated businesses in the EU will soon have to accept government-backed digital identity wallets for customer verification. UK-based compliance technology provider Ondato is preparing its clients for this by partnering with Trinsic, which will act as the infrastructure provider behind Ondato’s new digital identity capability. The partnership enables Ondato’s clients to verify customers through EU Digital Identity Wallets as member states roll them out under the European Digital Identity (EUDI) framework.
eIDAS 2.0 sets deadlines for wallet acceptance
Under eIDAS 2.0 (Regulation (EU) 2024/1183), all 27 EU member states must offer at least one digital identity wallet to citizens by the end of 2026. These wallets are government-issued or government-recognised mobile apps that let individuals prove their identity and choose to share verified information with regulated businesses. By December 2027, banks, financial institutions, and other regulated businesses that require strong user authentication must accept the wallets when users request it.
Liudas Kanapienis, co-founder and CEO of Ondato, described EU digital identity wallets as a major change in how Europeans prove who they are, noting that accepting them will not be optional for many regulated businesses. Riley Hughes, CEO of Trinsic, said the company has been preparing for EUDI since the early stages of the mandate and already supports national identity authentication services for France, Italy, Denmark, Austria, and other member states.
Wallet verification feeds into risk and fraud monitoring
The new capability builds on the national digital identity methods Ondato already supports, such as Smart-ID. EUDI wallet verification will sit alongside Ondato’s existing identity verification and know your customer (KYC) tools on its customer intelligence platform. As with its other verification options, the data will feed into risk scoring, continuous fraud monitoring and detection, and customer journey management.
Ondato serves regulated businesses including neobanks, payment providers, and social media and marketplace platforms, and offers identity verification, business onboarding, data validation, and authentication. Founded in 2018, the company is headquartered in London, with research and development in Lithuania, and has onboarded more than 40 million users across clients in 192 countries. With the Trinsic partnership, Ondato’s clients can start accepting EUDI wallets at launch, ahead of the December 2027 deadline.
