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The European Union’s digital transformation is accelerating, and with it comes the much-anticipated update to the eIDAS 2.0 framework. This modernized framework is poised to revolutionize the way digital identities function across the EU, presenting a significant opportunity for Nordic entrepreneurs to innovate, expand, and thrive in an increasingly connected European market.
If you're a Nordic entrepreneur, or operate in the digital identity space across Finland, Sweden, Denmark, or Norway, this guide is for you. Below, we break down what eIDAS 2.0 entails, how it impacts businesses operating in the EU, and, most importantly, how startups and businesses in Nordic countries can capitalize on this evolving landscape.
The European Union's eIDAS (Electronic Identification, Authentication, and Trust Services) regulation has been instrumental in ensuring secure online transactions across EU countries. The regulation standardizes electronic identification and trust services, allowing individuals and businesses to use their national electronic IDs to access online services in other EU countries. This standardization simplifies cross-border interactions and builds trust in digital transactions. eIDAS 1.0, launched in 2014, laid the groundwork for electronic identification and trust services within the EU, focusing on mutual recognition of eIDs and trust services. However, it had limitations, such as varying levels of security and user experience across different countries. eIDAS 2.0, the updated version, introduces the European Digital Identity (EUDI) Wallet, a digital wallet that allows citizens to store and manage digital credentials alongside their eID. This wallet enhances user control and privacy, allowing individuals to share only the necessary information for specific transactions. eIDAS 2.0 emphasizes interoperability among EU member states, ensuring digital identities and trust services are recognized and accepted across borders, simplifying access to public and private services and fostering a more integrated digital economy.
For Nordic entrepreneurs, this regulation is more than just compliance, it’s a springboard for innovation. With the Nordic region traditionally leading in digital adoption and transparency, eIDAS 2.0 creates plenty of opportunities to deliver value-driven digital identity solutions.
A Qualified Trust Service Provider (QTSP) is an entity that offers trust services meeting the stringent requirements set by eIDAS 2.0. These services include electronic signatures, seals, and timestamps, which are legally recognized across the EU. QTSPs play a crucial role in ensuring the security and authenticity of digital transactions.
eIDAS 2.0 defines different Levels of Assurance (LoA) to indicate the strength of identity verification.
These credentials require the most rigorous identity verification and are used for:
Government Services (e.g., applying for social security benefits)
Signing Legal Documents (e.g., high-value contracts)
Medical Records Access (e.g., retrieving sensitive patient data)
Example: A digital signature used for signing a business acquisition deal, or issuing a digital driving license.
A balance between security and ease of use, these credentials are used for:
Online Banking (e.g., logging into your bank account)
Signing Contracts (e.g., employment agreements)
Education Certificates (e.g., University degrees)
Example: A student getting a digital proof of education/skills, a proof of employment, Above 18 age proof
These credentials are for low-risk activities where convenience is prioritized over security, such as:
Booking a flight ticket effortlessly
Accessing Basic Online Services like Online Shopping
Interacting with any Online Service
Example: A digital loyalty card for a clothing store, or gym membership access, pre-filling information to smoothing onboarding.
Nordic countries, known for their tech-savvy populations and forward-thinking economies, are uniquely positioned to lead in the adoption and application of eIDAS 2.0. Here’s how these updates impact businesses operating in the EU:
Broader Market Access: With eIDAS 2.0 ensuring interoperability across the EU, startups and businesses based in Nordic countries can now reach customers and clients across all EU member states more efficiently. For example, a customer solution integrated with the European Digital Identity Wallet eliminates the friction of cross-border authentication and verified user onboarding.This creates an unprecedented opportunity for businesses to scale quickly and offer services to a broader audience without the need for additional country-specific compliance efforts.
Enhanced Trust and Security: Customers increasingly demand safer interactions and stronger privacy assurances. The new eIDAS 2.0 framework reinforces these expectations with stronger security protocols, enabling businesses to offer greater transparency and win consumer trust. Whether you operate an e-commerce site, a fintech startup, or any service requiring user data verification of any kind, aligning with eIDAS 2.0 mandates demonstrates responsibility and commitment toward user security.
Opportunities for Innovation: The introduction of the European Digital Identity Wallet paves the way for new solutions that integrate seamlessly with this ecosystem. For Nordic businesses specializing in tech and identity innovation, there’s an opportunity to develop apps, services, and APIs that use the wallet's functionality. This might include secure payment solutions, travel and tourism tools, or tailored health-related functionalities.
Streamlining Administration: Nordic entrepreneurs often face challenges with complex administrative processes as they expand into new EU markets. By making secure document signing and digital identification faster and universally recognized, eIDAS 2.0 helps streamline bureaucracy and new market entries.
The big question is, how can Nordic entrepreneurs and startups actively implement and benefit from eIDAS 2.0?
1. Adapt Early
Businesses that are aware of its impact and opportunity can align their product development roadmap with the eIDAS 2.0 timeline now and will have a competitive advantage as the framework becomes mandatory across the EU. Businesses should evaluate how they can benefit from digital credentials and if their operations intersect with digital identity and authentication processes they can start integrating eIDAS-compliant solutions.
2. Develop Complementary Technologies
Take advantage of the European Digital Identity Wallet's timeline by creating tools that integrate seamlessly with the EU identity ecosystem. Consider how your solutions could enhance services, simplify processes, or create new customer value.
3. Partner with Digital Authorities
Collaborating with trust service providers and digital identity experts will position your business as a reliable player in this space, and can also help you be a few steps ahead of others. Developing expertise in this field could set Nordic startups apart in the broader European ecosystem.
4. Educate Your Customers
Building customer trust goes hand-in-hand with education. Leverage eIDAS 2.0 updates as a marketing edge, informing clients of your business's adherence to EU-wide security and identity standards. This communicates professionalism and a commitment to safety.
Hovi simplifies eIDAS 2.0 compliance by providing powerful yet easy-to-use APIs, SDKs and No-Code Platform that businesses can use to , issue or verify digital credentials to customers into their EU Digital Identity wallet Hovi is tailored for businesses operating in the EU to have ability to Verify High/Medium/Low level of assurance credentials and issue Medium/Low Level of Assurance credentials. Our platform ensures seamless integration with the European Digital Identity Wallet, opening doors to 740 million people across 27 EU countries enabling businesses to issue credentials, verify identities efficiently while maintaining privacy and security. With our expertise in Self-Sovereign Identity (SSI) and digital trust frameworks, Hovi helps businesses leverage the new regulation to grow their business, streamlining authentication processes, enhance user experience and security and creating new business oppertuntities. Whether you're a startup or an enterprise, Hovi empowers you to leverage eIDAS 2.0 with confidence and build for the future.
Hovi will enable businesses to verify Personal Identification Data (PID), ensuring compliance with High LoA Credentials for critical use cases such as KYC/KYB, financial services, government interactions, and legal transactions. Our solution also supports the issuance and verification of:
Whether you're a tech startup integrating identity systems or an entrepreneur exploring new growth strategies, Hovi is here to guide you through the changes and help you build scalable solutions for the future.
Contact Us Today to learn more about how we can support your business in staying ahead of the curve.
eIDAS 2.0 is transforming digital identity in the EU, and Nordic businesses that adapt early will gain a competitive edge. With tools like Hovi, you don’t have to navigate these changes alone. From streamlined integration to complete compliance, Hovi empowers your business every step of the way. Don’t wait for the future; start building it today. Explore Hovi and take the first step in staying ahead with digital identity technology. Let’s discuss how it can work for your business book meeting today.
