The European Business Wallet (EBW)

The European Business Wallet is a digital tool unveiled by the European Commission as part of the EU Competitiveness Compass 2025. The idea of the European Business Wallet is to create a digital solution to help businesses, particularly small and medium-sized enterprises (SMEs), identify, verify and operate digitally within the EU.? It aims to simplify and streamline business operations, reduce administrative burdens, and foster a more integrated digital business environment throughout the European Union.

The Business Wallet is part of a wider set of changes the EU is making to the legal landscape as part of its Digital Decade programme.? Other changes are focused on adding or increasing consumer protection to be digitally ready whilst removing barriers for businesses (especially SMEs) and creating a digital infrastructure.? Identity is critical in a digital world, so it is no surprise that both personal and business digital IDs are part of this programme.?

Key features of the European Business Wallet include:

·???????? Secure storage and management of digital business credentials, licenses, and certificates

·???????? Cross-border interoperability for seamless operations across EU member states

·???????? Enhanced security measures building on eIDAS regulations

·???????? Streamlined regulatory compliance processes

·???????? Simplified digital credential management

·???????? Background of the European Business Wallet

Background of the European Business Wallet

The European Business Wallet initiative emerges from a broader context of digital transformation efforts in the European Union. It builds upon the foundation laid by the eIDAS (Electronic Identification, Authentication and Trust Services) Regulation, that created a robust a framework for secure electronic identity and transactions across EU member states. The concept of a business wallet is a natural extension of the EU's ongoing work on digital identity solutions, particularly the EU Digital Identity Wallet (EUDI Wallet) for natural (i.e. living) persons. The Business Wallet addresses the growing need for a similar solution tailored to businesses and organizations, stemming from the increasing digitalization of business processes and the desire to streamline cross-border operations within the EU's Single Market.

Business Benefits: Focus on SMEs

The European Business Wallet, as part of the overall Competitiveness Compass initiative aims to deliver significant benefits for businesses, with a particular emphasis on SMEs:

1)????? Reduced Administrative Burden: The Commission aims to cut reporting requirements by at least 25% for all companies and 35% for SMEs.

2)????? Cost Savings: Projected savings of approximately €37.5 billion in recurring costs to SMEs through the end of the current mandate.

3)????? Improved Cross-Border Efficiency: Streamlined operations and regulatory compliance across EU member states.

4)????? Enhanced Digital Security: Building on eIDAS regulations to ensure secure digital business transactions.

5)????? Simplified Credential Management: Easier handling of digital business credentials, licenses, and certificates.

These benefits are expected to significantly boost EU competitiveness, particularly for SMEs, by addressing longstanding barriers and structural weaknesses that have hindered productivity growth.

Comparison to Similar Initiatives

The European Business Wallet is part of a global trend towards digital identity and wallet solutions. Several comparable initiatives include:

·???????? Data Universal Numbering System (DUNS): ?A commercial solution from Dun & Bradstreet that includes a verified identity for every business operating unit in their network (over 500 million businesses). DUNS numbers are widely used (e.g. by the UN) to identify businesses, but do not provide a digitally verifiable technology (e.g. a digital certificate)

·???????? Legal Entity Identifiers (LEIs):?? A not-for-profit business identity service provided by the Global Legal Identity Foundation.? EU payment and stock market regulations increasingly require that financial service or listed businesses are identified using their LEI.? Currently almost 2mil businesses ?have an LEI

·???????? CFIT coalition for business digital ID: ?a UK specific cross-industry and regulator initiative to use existing information to create verifiable business IDs.

Conclusion

In conclusion, the European Business Wallet offers a promising avenue for enhancing the efficiency, security, and competitiveness of SMEs within the EU. By drawing on successful models like DUNS, LEIs, and the CFIT coalition, it aims to overcome existing hurdles and create a more integrated, dynamic business environment. This strategic move will not only foster growth and innovation but also solidify the EU’s position in the rapidly evolving global digital economy.

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#DigitalTransformation #SME #SMEGrowth #DigitalIdentity #Innovation #BusinessEfficiency #Identity #DigitalWallet