iDenfy prepares businesses for the EU Digital Identity Wallet regulation with non-doc, reusable ID workflows
The EU’s eIDAS 2.0 regulation was introduced, and iDenfy presents new additional onboarding workflows through digital ID solutions, like Smart-ID, MitID, BankID, and others
London, United Kingdom (May 14, 2026)
iDenfy, a global RegTech and fraud prevention service provider, announced a major platform update ahead of the European Union’s Digital Identity Wallet compliance regulations for regulated businesses that require verifying users through government-backed digital ID verification methods, all without asking the user to upload an actual photo of their ID document. That means users will be entering their credentials that they use for daily services already, which creates a familiarity factor. According to iDenfy, these newly launched non-doc verification workflows will help businesses increase conversions due to the simplified version of the standard, document-based Know Your Customer (KYC) process.
Under Regulation (EU) 2024/1183, the eIDAS 2.0 framework requires all 27 EU member states to make at least one EU Digital Identity Wallet (EUDI Wallet) available to their citizens by December 31, 2026, a binding legal obligation with no room for interpretation. Banks, payment institutions, and electronic money organizations have to operate under EU regulation, and now require accepting the wallet as a valid method for Strong Customer Authentication (SCA), due to direct compliance concerns.
The EUDI Wallet is a secure mobile application that can store verified credentials, including national ID cards, passports, and driving licenses in one place, so users won’t need to be asked to reverify every time they access a new service. This framework was presented in May 2024. To navigate businesses through this shift, iDenfy updated its platform with a combined physical and electronic ID verification flow. Rather than running separate processes, the integration handles both verification paths within a single session, and in this way, removes friction for the user as well as minimizes implementation overhead for the business.
A purely document-first verification flow is, in practical terms, a barrier to conversion for a meaningful share of users in these regions. The data reflects this. iDenfy has recorded a 23% reduction in verification drop-offs among users who previously abandoned sessions because a physical document was not available, and projects 30% reduction to allow the system to automatically switch to the electronic ID verification workflow when a physical document capture fails due to poor image quality or lighting, or other minor issues.
The challenge businesses face is not purely about regulation, though that pressure is real and immediate. Across the Nordic markets, the shift away from physical document verification has already happened at scale. BankID is the dominant identity method in Sweden and Norway. MitID handles the majority of identity transactions in Denmark. Smart-ID is the standard across Estonia, Latvia, and Lithuania. In these markets, asking a user to photograph a physical ID card is increasingly the friction point that ends a session, not a standard step within one.
In general, iDenfy’s identity verification tool covers over 16,000+ government-issued documents across over 200+ countries and territories, with automated workflows handling different KYC processes as needed. Clients can choose various elements and combine their own onboarding process using elements like facial recognition, age verification, or passive liveness detection without ever needing to code. Cases that fall outside automated parameters are sent to iDenfy’s internal compliance team, which operates nonstop with dedicated day and night shifts, so reviews are not delayed by weekends or public holidays.
The second layer is a manual review conducted by iDenfy’s internal compliance team, available 24 hours a day, seven days a week. The company has day and night shifts to manage this process without any interruptions, such as holidays, weekends, or any specific days, to be able to catch edge cases, flag anomalies, and guarantee the most accurate outcome for every session. The combined flow is available to all iDenfy customers at no additional cost and can be enabled directly through dashboard settings, with no new integration work required.
For financial institutions, that means any onboarding or authentication flow that cannot process a wallet-based credential will be out of compliance. Likewise for fintechs, payment processors, and electronic money providers, the consequences of non-compliance extend far beyond regulatory penalties. A business that cannot accept wallet credentials will be unable to onboard a growing segment of EU users who will fail with a wallet-based identification as their primary method. This can create legal exposure and a direct revenue loss at the point of user acquisition. According to research from Fenergo, globally, businesses already spend $72.9 million per year on AML and KYC compliance, simultaneously losing clients due to inefficient onboarding flows. Adding wallet incompatibility to that equation compounds an already costly problem.t.
“The EUDI Wallet is not a future consideration for businesses in regulated markets; it is an immediate infrastructure question. Electronic IDs carry the same level of government-backed trust as physical documents, and in many cases, they are harder to forge. Our role is to make sure that businesses can accept both methods without rebuilding their onboarding system from scratch,” commented Domantas Ciulde, the CEO of iDenfy.
