France and EU Digital Identity: Two-Speed Adoption and What It Means for Businesses

Identity verification is undergoing a significant change across Europe. As more public services, financial products, and commercial transactions move online, governments and businesses need more reliable ways to verify users remotely, reduce escalating rates of fraud, and avoid repeatedly collecting copies of sensitive identity documents. This has made digital identity a core part of Europe’s wider push for secure, interoperable, and user-controlled digital services.

Under the amended eIDAS 2.0 framework, by the end of 2026, all EU Member States must offer a European Digital Identity Wallet, or EUDI Wallet, to their citizens, residents, and businesses. The aim is to give users more control over what information they share while creating an interoperable system that works across the EU for identity verification, authentication, electronic signatures, and verified credentials.

With some of the most rigorous compliance expectations in Europe, France is preparing for this shift through its own national digital identity system, France Identité. This state-backed app, linked to the electronic national identity card, is already being used as official credentials, including for driving licenses, as part of the digitalization of identity in France. This creates a two-speed digital identity landscape: the EU is moving toward a common wallet framework under eIDAS 2.0, while France is developing digital identity infrastructure through a national model shaped by official identity assurance and strict compliance expectations.

For businesses operating in France, this raises a practical question: how will the French path align with the EUDI Wallet, and where might it differ?

Two speeds, one framework: Setting the scene

Although digital identity in Europe has moved toward a common legal framework, there is no common baseline across the EU Member States. Some have used digital identities for decades, embedded in many everyday interactions with government, banks, healthcare providers, tax authorities, or trust services. Estonia’s eID, for instance, has been in use since 2002. The result is a two-speed landscape: one new EU digital identity framework, but very different readiness legacies across the EU Member States.

This is partly what makes digital ID adoption in Europe complex. eIDAS 2.0 sets the legal direction of travel, but implementation depends on national identity systems to introduce wallet-based verification, as well as local trust models, certification processes, and how quickly public and private services accept wallet-based verification.

As digital wallets become increasingly important, France has chosen to navigate this adaptation through a government-backed digital identity application, France Identité, linked to the country’s electronic national identity card and designed around high-assurance authentication and regulatory compliance. Let’s dive into the details.

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France's digital identity model today

The digital identity landscape in France is built around France Identité. The app was launched in beta in 2022 and opened more widely in February 2024. It is free and designed to complement the physical identity card and existing administrative procedures.

France Identité and the national approach

France Identité is intended to allow users to prove their identity more securely and access digital credentials, with authentication via FranceConnect, its portal for accessing online services. It reflects France’s cautious national approach to identity verification, in which digital identity is closely tied to public-sector infrastructure.

To create a digital identity, users need France’s new identity card and a compatible smartphone to complete an identity verification process that includes reading the card via NFC and securing access with a personal code.

Users can then generate single-use identity proofs as an alternative to sending copies of ID documents.

KYC requirements in France are beginning to fall between two models: traditional document-based checks and emerging wallet-based verification. France Identité could reduce fraud risks associated with copied or manipulated documents and support more reliable identity verification. However, its impact on private-sector onboarding will depend on how widely businesses can integrate these credentials, whether regulators accept them for specific KYC use cases, and how they interact with the EUDI Wallet under eIDAS 2.0.

Compliance expectations inside France

KYC obligations in France are shaped by its mature AML/CFT framework. Financial institutions, fintechs, crypto-asset service providers, payment firms, and other regulated businesses must identify and verify customers at the start of a business relationship and, where relevant, establish the identity of beneficial owners. They must also apply risk-based controls, monitor relationships over time, and keep evidence of the checks performed.

This makes the identity verification process crucial. Businesses need to show not only that a customer submitted identity data, but that the data came from a reliable source, was checked in a proportionate way, and can be audited if required.

France’s official digital identity model may therefore help by providing stronger signals about the origin and integrity of identity data and by fitting digital identity tools into existing KYC, AML, fraud prevention, and data protection controls.

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How the EU is moving on digital identity

The EU’s approach to European digital identity is based on harmonization. The revised eIDAS regulation creates a common legal and technical framework so that digital identity credentials can work across borders. This means a person should be able to use a trusted digital identity issued in one Member State to access public and private services in another, while keeping control over what data they share.

eIDAS 2.0 and the path to harmonization

eIDAS 2.0 updates the original eIDAS regulation, which governed electronic identification and trust services across the EU. The revised framework, formally introduced through Regulation (EU) 2024/1183, entered into force in 2024 and requires Member States to provide EU Digital Identity Wallets to citizens, residents, and businesses by the end of 2026.

It sets rules for wallet certification, interoperability, electronic attestations of attributes, and trust services like electronic signatures and seals. The European Commission has also adopted implementing regulations to define technical and operational details, including wallet certification, identity data, attribute attestations, and remote onboarding.

The EU Digital Identity Wallet rollout

The EU Digital Identity Wallet is at the core of the new framework. Each Member State will offer at least one wallet built to common EU specifications, allowing users to store and share identity data and verified documents. The Commission says users should be able to control what information they share and with whom.

European digital identity wallets are also designed to support cross-border use cases. A user could, for example, open a bank account, access a public service, sign documents, or prove a specific attribute without repeatedly submitting full identity documents. For regulated businesses, this could make onboarding faster and more consistent.

Where the two speeds diverge

The key difference in the adoption of digital ID infrastructure in Europe is the route each country takes to get there. While the EU is creating a common identity framework under eIDAS 2.0 to introduce EUDI Wallet apps, Member States are still building on different national systems and levels of public adoption. 

A wallet credential may eventually be interoperable across Europe, but the systems behind that credential will remain national.

In short, the rules for digital identity are harmonizing, but their implementation is not.

Pace of adoption across member states

The rollout of digital ID in Europe faces the challenge that common standards must work across countries with very different starting points. In some Member States, digital identity is already embedded in sectors such as banking, taxation, healthcare, and public services. In others, adoption depends on newer wallets or the gradual expansion of public-sector use.

The European Digital Identity Wallet is intended to narrow these gaps in application, and every Member State is expected to offer at least one wallet built to common specifications. However, availability does not automatically mean immediate mass adoption. Users will need to trust the wallet, public and private services will need to accept it, and regulated businesses will need clarity on when wallet-based credentials can support onboarding, AML checks, or other compliance processes.

Europe is not moving at one uniform speed in its introduction of digital identity, either. The Commission’s EUDI Wallet Launchpad testing has demonstrated a spectrum of maturity and readiness among projects, with uncertainty about whether any Member States will be able to fully roll out their digital wallets by the end of the year.

Some Member States have made considerable progress. Germany, for example, entered 2026 with one of Europe’s most mature digital identity infrastructures. Its national eID system has been integrated with German identity cards and passports since 2010 and has been recognized under eIDAS at a high assurance level. However, Germany’s federal structure also means implementation is spread across federal and state-level systems, making coordination more complex.

In Spain as well, since April 2, 2026, citizens have been able to use the MiDNI app to obtain a legally valid form of digital identification, which public and private entities are required to accept.

France illustrates a cautious approach to adoption built around existing infrastructure. France Titres has also led APTITUDE, a European consortium designed to test cross-border wallet use cases. This places France in a leading position in the EU’s harmonization effort, but through a route shaped by official identity systems.

Verification standards and user onboarding

Another divergence is the digital identity verification process itself. Under the EU model, wallets are expected to make identity data and verified attributes easier to reuse across borders. But for regulated businesses, the underlying question remains: how was the digital identity created, what level of assurance does it carry, who issued the credential, and can the business rely on it for KYC, AML, fraud prevention, or data protection purposes?

In France, meanwhile, the identity verification process remains very closely connected to existing official credentials. France Identité requires an electronic national identity card and activation via a compatible smartphone and FranceConnect, which could create a different onboarding rhythm than in markets where digital identity adoption has been driven more by mobile-first services. 

At the same time, France’s structure can give regulated companies clearer assurance about the source and quality of identity data once wallet-based verification becomes more widely accepted.

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What this means for French businesses

Identity verification in France is evolving on two tracks simultaneously. On one hand, existing national obligations remain fully in force: KYC, AML compliance, fraud prevention, GDPR-aligned data handling, and audit trails are non-negotiable. On the other hand, the EU Digital Identity framework is introducing a new layer, reusable digital credentials that users carry in a wallet app and present across services. Businesses that rely on strong authentication under EU law will be required, within a defined timeline, to accept these wallets as a valid verification method.

This matters because wallet readiness is no longer purely a technology decision. Once Member States are required to make EU Digital Identity Wallets available, a 12-month countdown begins, after which certain regulated relying parties must accept them. For businesses in scope, this makes EUDI Wallet compatibility a compliance requirement rather than an optional upgrade.

❗The practical takeaway: French businesses should audit whether they fall within the category of relying parties subject to mandatory wallet acceptance, and if so, begin factoring wallet integration into their identity infrastructure roadmap now rather than reactively.

Cross-border operations and interoperability

The eIDAS 2.0 regulation is designed to make digital identity interoperable across the EU. Every Member State will provide at least one EU Digital Identity Wallet to citizens, residents, and businesses, with the aim of allowing users to prove who they are and share verified digital documents in a secure and privacy-preserving way.

For French businesses operating across Europe, eIDAS 2.0 could reduce the friction of verifying customers from different Member States. A French platform could accept wallet-based credentials from customers in any other EU country, rather than relying only on country-specific onboarding flows.

Businesses will still need to understand what credential was presented, who issued it, what assurance level it carries, and whether it is suitable for the service being offered. Businesses that accept wallet credentials must be able to request, validate, and record digital identity data in a compliant way.

Practical steps for compliance teams

For compliance teams, the first step is to define digital identity verification within their own operating context. It is not only about checking whether a passport, ID card, or driving license looks genuine. In a wallet-based environment, digital identity verification also means assessing:

• the source of the credential
• the assurance level behind it
• the integrity of the data
• how the result is recorded for audit purposes

To become eIDAS-compliant, businesses should start mapping their current onboarding flows against the upcoming EU wallet framework and the planned rollout deadline at the end of 2027. This means identifying:

• whether wallet acceptance is legally required, sector-specific, or voluntary for each product, market, and customer journey 
• how wallet credentials will be stored or minimized under GDPR
• how digital identity checks connect with AML monitoring, fraud controls, and sanctions screening
• whether the business will connect to wallets directly or through identity verification providers, wallet connectors, or trust-service partners

The EUDI Wallet may allow businesses to request only the data they need, such as proof of age, name, residency, or a driving entitlement, rather than collecting full document scans by default. For French businesses, the task is therefore twofold: align with France’s stringent identity assurance model and prepare for a European market in which verified credentials must move across borders as digital identity plays an increasingly prominent role.

FAQ: France and EU Digital Identity

• Does France have a digital ID?

  Yes. France has a state-backed digital identity system through France Identité, which is linked to the electronic national identity card (CNI) and can be used to prove identity, generate single-use identity proofs, and access some public and private services.

• What is the EU Digital Identity Wallet?

  The EU Digital Identity (EUDI) Wallet is a secure digital wallet that will let EU citizens, residents, and businesses store and share identity data and verified documents, such as driving licenses. It is designed to work across EU Member States under the amended European digital identity framework, eIDAS 2.0.

• What is digital identity verification?

  Digital identity verification is the process of checking that a person is who they claim to be using digital data, documents, credentials, biometrics, or other verification methods. In regulated sectors, it is a key component of KYC and AML controls because businesses need to conduct identity checks that are reliable, risk-based, and auditable.

• When will the EU Digital Identity Wallet roll out?

  The deadline for the EU Digital Identity (EUDI) Wallet rollout across the EU is the end of 2026. This means EU Member States are expected to make at least one wallet available by the end of 2026. The wallet is mandatory for Member States to provide, although individuals are under no obligation to use it.

• What is eIDAS 2.0?

  eIDAS 2.0 is the Amendment to the “electronic IDentification, Authentication and trust Services” regulation, formally Regulation (EU) 2024/1183. It amends the original eIDAS framework for electronic identification and trust services and creates the legal basis for the European Digital Identity Wallet, setting rules for interoperability and trust services across the EU.