When the first eIDAS regulation was introduced in 2014 it transformed the landscape for digital services and trust service providers. It established a framework that protected both businesses and consumers, ensuring that secure and legally valid e-signatures and other digital services were provided to consumers.
However, as the digital landscape evolves and consumer expectations rise, it has become essential to implement updated regulations that align with the needs of modern businesses and their customers. Enter eIDAS 2.0. In this article, we’ll delve into what eIDAS 2.0 entails and outline the key information businesses require to stay compliant.
eIDAS 2.0 is the second iteration of the Electronic Identification, Authentication and Trust Services regulation implemented by the EU. The aim of eIDAS 2.0 is to further streamline and secure electronic transactions across EU member states, increasing trust and more seamless interoperability. The updates in eIDAS 2.0 are particularly important for identity companies, as the regulation provides a standardised framework for digital identities and trust services, enabling simpler and more secure cross-border transactions.
The original eIDAS regulation provided a consistent framework for electronic identification and trust services across the EU, establishing a secure digital market. Building on this foundation, eIDAS 2.0 introduces enhanced features and capabilities to address the changing demands of digital transactions and identity management, ensuring it stays aligned with the needs of the modern digital landscape.
The changes in the reformed eIDAS cover three key areas:
Whilst eIDAS has achieved mostly positive results, it hasn’t yet fully succeeded in its original aims, with eIDAS 2.0 intending to fill in the missing gaps. One of the main goals of eIDAS 2.0 is to encourage more individuals and businesses to use secure and trusted digital identity solutions. Another important goal for eIDAS 2.0 is to improve the infrastructure and interoperability of national services for digital solutions.
Strengthening the infrastructure for digital solutions will allow trust services to be expanded and avoid fragmentation in national solutions. This in turn should empower more businesses and organisations to incorporate these services into their document and identity verification processes.
The regulation which establishes the European Digital Identity Framework was published in the Official Journal of the European Union and came into effect on 20th May 2024. Currently, the implementation of the regulation is ongoing, with the full rollout expected to be completed by 2026. However, the European Commission has set specific deadlines for certain aspects of the standards to be in place. This included the 21st of November 2024 which is when the institution established reference criteria and verification processes for digital identity wallets which are a core part of eIDAS 2.0.
The coronavirus pandemic in 2020 significantly impacted business operations and daily life, with demands for more digitalisation increasing much quicker than anticipated. As a result, over the past few years, technology has rapidly advanced to meet these new demands, which means regulations need to be updated as well to protect businesses and consumers better. eIDAS 2.0 was driven by the need for more robust security measures, better user control, and wider applications for digital identities.
As mentioned earlier, a significant update in eIDAS 2.0 is the introduction of the European Digital Identity Wallets (DIW), designed to be accessible to all EU citizens and residents. These wallets will enable users to securely store and manage their digital identities and attributes, such as driving licenses, bank accounts, and medical records, in a single location. By streamlining identity verification and enhancing privacy, the DIW empowers individuals with greater control over their personal data and the information they choose to share.
A digital identity is essentially a digital representation of the core information that makes up your identity, such as your name and age. It can also include other details about you at your request, including your address or biometric information like a face scan or fingerprint. With this digital information, you can prove your identity during transactions and interactions without the hassle of needing to present physical documents.
An important distinction between digital identities and physical documents is that you have more control over what information is shared with your digital identity. This means you can limit the details to only what you need to provide at the time. For example, if you need to prove you’re over 18, you can provide a simple yes/no response without revealing other personal details. Therefore, with digital identities, users can create and maintain their identity having full control over the information they choose to share and use across various services and platforms, both public and private. Also, for businesses by integrating digital identities into their processes, they can effectively streamline user onboarding, improve the customer experience, and fully comply with the eIDAS 2.0 regulation.
eIDAS 2.0 can have a wide range of benefits for different sectors, including businesses, citizens, and governments.
eIDAS 2.0 can benefit businesses by offering them greater efficiency and significant cost reductions. By utilising digital identities and trust services, businesses can simplify the customer verification process, reduce administrative overhead, and minimise the risk of identity fraud. Additionally, eIDAS 2.0 can open up new opportunities for organisations through the standardisation of digital identities and their management across the EU. This standardised framework helps businesses develop new, compliant identity solutions that meet the needs of a broader target market.
eIDAS 2.0 will be highly beneficial for citizens as it makes it easier and more secure for them to access public and private services online. With digital identities and the DIW, citizens can seamlessly authenticate their identity digitally, without the hassle of trying to remember several different login credentials and passwords.
This enhances privacy and data security which are integral parts of eIDAS 2.0. Also, it means personal information is securely managed and only shared with explicit consent to the receiving party. In line with the original eIDAS and eIDAS 2.0, this works to build more trust in digital services and encourage more people to transition from their traditionally paper-based process to more efficient digital solutions.
It’s not just consumers and businesses that can benefit from eIDAS 2.0, the regulation can offer useful benefits to governments too. This is because having secure digital identities in place can make it easier for users to access government services and improve their experience, ensuring positive interactions with the government and better delivery of public services.
Also, eIDAS 2.0 allows standards and processes across the EU to be harmonised, meaning the application and recognition of digital identities and trust services like e-signatures are more consistent. As a result, any unnecessary complexities or challenges in processes can be reduced through improved collaboration and communication between EU member states and ensure more effective completion of public administration.
eIDAS 2.0 offers diverse applications across multiple industries, highlighting its adaptability and significance in today’s business environment. Here are some examples showcasing how eIDAS 2.0 can be utilised in real-world scenarios.
Under eIDAS 2.0, advanced and qualified electronic signatures (QeS) ensure the authenticity and integrity of digital documents. QeS, being the only type of signature with the same legal standing as handwritten signatures, is particularly valuable in the banking and finance sector. It allows sensitive documents, such as contracts and loan agreements, to be signed digitally. This not only enhances operational efficiency and customer experience but also maintains robust security and reliable identity verification.
Electronic seals offer legal assurance for the origin and integrity of official government documents, increasing transparency and trust amongst constituents. These seals are often used to authenticate public records, certificates, and other documents, providing assurance that they are tamper-proof and can be verified if evidence is required. With electronic seals, public administrations can strengthen their processes and reduce fraud.
Any UK or EU business that is completing document transactions with other European countries should comply with eIDAS 2.0. If you’re looking for a fully secure and legally compliant electronic signature platform, E-Sign can help. We are an industry-leading provider, with products and features to fit the specific needs of several industries including eWitnessing, 21 CFR Part 11, conveyancer-certified signatures and more.
Contact us today to discuss your requirements and our digital transformation will be able to help you implement a tailored solution that fits your business needs. You can also get started with E-Sign by registering for a 14-day free trial, allowing you to see how the platform can work for your document processes.