Electronic Identification (eID)

In many countries, yes. The European Union (EU), for instance, has the eIDAS regulation that ensures electronic identification is recognized across member states. This allows for secure cross-border digital services. Many EU countries are considering adopting digital ID in the near future as a way to make accessibility easier for users, in line with the highest security standards. As a result, many RegTech service providers, including iDenfy, have adapted and are now offering third-party eID verification solutions that are document-free and include database verification methods. 

The EU introduced the Digital Identity Wallet in response to evolving digital needs and changes that were made to the 2014 eIDAS Regulation in 2021. Currently, the EU Digital Wallet regulation is part of the 2024 European Digital Identity regulation, and is designed to allow people to securely manage and use their identity across the EU. In simple terms, it’s an alternative method to traditional, paper-like ID management methods across the EU.

The Digital Identity Wallet is a secure system or an app that allows its users to store and share personal details:

• ID cards
• Driver’s licenses
• Diplomas

Use cases include remote customer onboarding, such as before accessing certain services (gambling sites, fintech apps, etc.), signing documents, among other gated services that require extra security controls in terms of sensitive data or transactions. For example, iDenfy can streamline this process by offering digital ID verification methods, such as Smart ID, in various EU countries, including redirecting the user to Sweden’s BankID and then asking them to complete the typical ID verification process (document check + biometric check). 

eID Europe is another term for Electronic Identification (eID), also known as a service offered by the European Commission (hence the name), that enables a universal system for digital ID verification, along with other important features across EU member states, such as the cross-border mutual recognition of electronic identification methods. This enables users in the EU to utilize their national eIDs when accessing online services in other European nations.

It doesn’t require uploading the user’s ID document (unless the company requires adding a few KYC layers, in this case, database verification (eID) and document verification (government-issued ID verification)). Electronic Identification (eID) is considered a passive identity verification method that matches the user’s data against another trusted database. 

That helps improve pass rates and conversions in other eID branches, such as Proof of Address (PoA) verification, when the user is redirected to a utility service provider and their POA is cross-checked directly with the utility service provider’s information. It’s a good option for when the user can’t provide the original document. Such as a utility bill. 

eID is commonly used in online banking, healthcare services, government portals, e-commerce platforms, and similar services, which are typically considered high-risk due to reasons like handling a lot of financial transactions or working with sensitive information. That’s why eID verification is especially useful in industries that need strong identity verification and KYC onboarding processes that are completely automated, remote and digital, as well as focused on efficiency and good user experience (like finance or legal services).