This is why age verification is more important than ever
Whether purchasing alcohol or tobacco or accessing online services such as gaming, streaming or social media, age verification is a key element of youth protection. With the shift from offline to online channels and the trend towards self-checkout systems, there is a growing demand for efficient, legally compliant and customer-friendly solutions. New technologies such as the European Digital Identity Wallet (EUDI) are now opening up completely new possibilities for retailers and consumers.
When is age verification mandatory? Who is required to verify?
The German Youth Protection Act (JuSchG) and the Interstate Treaty on the Protection of Minors in the Media (JMStV) regulate when and how age verification must be carried out. As a general rule,
anyone offering age-restricted products or content is required to verify age, both in brick-and-mortar shops and online.
Typical applications for age verification are:
- Online: gaming, sports betting, online supermarkets, streaming/media. In future, platforms such as Spotify, major social media services or adult entertainment offerings could also be affected.
- Offline: sale of alcohol and tobacco (e.g. in supermarkets, kiosks, petrol stations), gambling, pyrotechnics.
Legal requirements set a framework for action:
- In e-commerce, two-step age verification is mandatory: at the time of purchase (e.g. ID upload, photo ID) and upon delivery (e.g. DHL Ident-Check). A simple checkbox (‘I am over 18’) is not sufficient. Violations are punishable by fines of up to €50,000.
- In brick-and-mortar retail, the presentation of official photo ID is standard practice; digital procedures are permitted if they are reliable and tamper-proof. The responsibility for accepting suitable procedures lies with the provider.
How relevant is the use case ‘age verification’?
Whether in-store or online, age verification is a key issue for retail and e-commerce. It affects millions of transactions every week and is crucial for compliance, efficiency and customer satisfaction. Innovative digital solutions are therefore key to sustainable success.
In brick-and-mortar retail, age verification has long been a business-critical process. Alcoholic beverages generate annual sales of 11 to 12 billion euros in Germany, while tobacco products – including vending machine sales – account for a further 25 to 30 billion euros. Together, these product groups make up around 5 to 7 per cent of total food retail sales. Particularly noteworthy: every second to third shopping basket contains at least one age-restricted product.
With the increasing prevalence of self-checkout tills, which can now be found in over half of all large food retail stores, there is a growing need for efficient, automated age verification. Customer expectations are clear: according to a study by EHI and KPMG, 61 per cent of consumers would welcome automatic age verification. This means that age verification is evolving from a regulatory necessity to a lever for a better customer experience and more efficient processes.
Age verification is also becoming increasingly important in online retail. In 2024, German e-commerce generated a total turnover of 80.6 billion euros. Although alcohol and tobacco are niche products and among the most strictly regulated product groups, they still record annual growth rates of over 20 percent. Tobacco and e-cigarettes are also experiencing strong growth, especially through specialised online shops. For retailers, this means that reliable, digital age verification is essential. It protects against legal risks, ensures compliance with regulations and prevents abandoned purchases through convenient, customer-friendly processes.
How does age verification currently work?
In brick-and-mortar retail, age verification is usually carried out in the traditional way by staff checking ID or scanning ID at the terminal; self-checkout systems usually require manual approval by employees. The efficiency and experience of a ‘self-checkout’ is lost, resulting in delays, effort and disappointed customer expectations.
In the digital realm, identification methods such as photo ID or eID are increasingly being used. Either in advance in combination with programmes, during onboarding or during the shopping process. Some solutions validate age in the background with database queries, but this is often rejected by customers from a transparency and data protection perspective. Age verification therefore takes place at the latest during the online checkout process – always with the aim of making the process as convenient as possible for customers and avoiding abandoned purchases.
How can EUDI wallets simplify age verification?
The introduction of EUDI wallets opens up a whole new level of convenience and efficiency in age verification for retailers and consumers:
- Digital: In future, customers will always have their official ID with them digitally on their smartphone. With just a few clicks on their smartphone, they can verify their age in a matter of seconds with a short confirmation.
- Data-efficient: Age verification with EUDI wallets is always data-efficient: Using ‘zero knowledge proofs’, the wallets provide binding confirmation that the person is of legal age, for example. No further data is transmitted. This increases security and protects against data misuse on all sides.
- Versatile: By definition, EUDI wallets contain the verified identity from the identity card and can also bundle other attributes such as loyalty cards or payment data. This not only speeds up age verification, but also allows other processes such as collecting bonus points or making payments to take place at the same time. And for e-commerce and mail order companies, it can be directly verified that, for example, the shipping address belongs to the verified person.
At the same time, brick-and-mortar retailers and self-checkouts still face the challenge of matching the photo on the ID card with the buyer. EUDI wallets are based on personal smartphones and personal access to EUDI wallets. Although this does not completely rule out the possibility of a smartphone being passed on and misused, the process can be assumed to be highly reliable.
Conclusion: EUDI wallets offer enormous potential for efficiency in age verification
Age verification affects a significant part of the retail sector, both offline and online. Digital solutions offer enormous potential for efficiently meeting legal requirements, speeding up processes and improving the customer experience. And with the introduction of EUDI wallets and wallet-based identity verification, a wave of innovation is imminent: the market launch is scheduled for 2027. Retailers and suppliers of products subject to youth protection regulations should get started now.
Verimi already offers a comprehensive platform for live testing with all relevant EUDI wallet environments. In addition, the Verimi EUDI gateway is an efficient solution for connecting to the EUDI wallet ecosystem. Get in touch with us.
