Business Case ID wallets: 5 key questions answered

Digital credential wallets are moving from concept to reality. The EU has set a deadline for member states to introduce an application by the end of this year, and in Switzerland, the introduction of an E-ID system with the national wallet, swiyu, was announced recently for the 1st of December 2026. With the introduction of these identity frameworks, businesses must now evaluate how these wallets impact their operations, customer experience, and competitive positioning. Below, we have compiled 5 key questions decision-makers should be able to answer.

1. What is an identity wallet?

An identity wallet is a secure digital solution that enables users to store and manage verified credentials, such as IDs, certificates, and licenses, on their devices. These wallets enable users to share trusted data instantly while maintaining full control over what is disclosed. High security and data protection standards guide the development of wallets. Regulatory frameworks, such as the General Data Protection Regulation in the EU or the New Federal Act on Data Protection in Switzerland, ensure that personal data is processed lawfully, securely, and transparently. These initiatives aim to foster digital trust and enable cross-organizational interaction while maintaining strong safeguards for users.

2. Why should businesses care now?

Thanks to eIDAS 2.0 and related Swiss legislation, digital credential wallets will be the norm throughout Europe in the future. Businesses, particularly those in regulated sectors, will enjoy faster onboarding and reduced fraud.

In practice, many organizations are not prepared yet. A lack of knowledge and insecurity may lead to decision paralysis and reinforce a “wait-and-see” approach. This reactive posture delays capability building and increases the risk of being unprepared when regulatory or market-driven changes require rapid implementation.

To overcome this inertia, organizations should adopt a proactive and iterative approach focused on capability development rather than full-scale deployment. This involves building internal expertise in digital trust technologies, conducting systematic analyses of existing processes, and identifying low-risk, high-impact entry points.

3. What are the transactional benefits?

Integrating identity wallets in their processes, organizations benefit from:

Faster and fully digital client onboarding in regulated industries
AML compliance
Reduced compliance costs (KYC/KYB)
Increased trust through verified credentials
Lower fraud risk
Better UX
Discovering new business models

4. What does it take to get started?

Companies must first meet certain requirements to act as reliable partners in the trust ecosystem. This includes identification of the company in the Know Your Business (KYB) process, such as the Know Your Customer (KYC) process that private customers go through in the financial sector. The process begins with an authoritative data source, typically a national business registry or another legally mandated register, acting as an authentic source of truth.

A designated credential issuer, often a public authority or a qualified trust service provider, can retrieve validated company data directly from the official registry via APIs. The issuer then uses this data to create a public identifier, which is registered at the government registry. This trust mark follows standardized formats and is cryptographically signed using a qualified certificate under ZertES or eIDAS. The signature ensures authenticity and integrity, and it binds the credential to the issuer’s trusted identity.

Next, representation rights must be established. Since companies cannot act on their own, a natural person (e.g., CEO or authorized employee) must be linked to the legal entity and be verified. A company is now ready to use the wallet ecosystem in both directions. It has been identified as a trusted entity and can accept credential wallets as customer identification.

5. How can complexity be managed?

Implementing identity wallets involves technical, regulatory, and operational challenges. Partnering with a qualified trust service provider like Swisscom simplifies integration, accelerates time-to-market, and ensures compliance with evolving standards.

If you want to dive deeper into the economic benefits of emerging E-ID ecosystems, download our free whitepaper!

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Want to assess your organization's maturity? Book the Swisscom e-ID readiness workshop.

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Business Case ID wallets: 5 key questions answered

1. What is an identity wallet?

2. Why should businesses care now?

3. What are the transactional benefits?

4. What does it take to get started?

5. How can complexity be managed?

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