How Europe’s new digital operating system for businesses will transform cross-border trade
The answer to Europe’s efficiency problem
Any business operating across borders in Europe is familiar with this scenario: a trading partner in Poland, a government agency in France, a tender in Spain. And every time, the same time-consuming procedure begins: obtaining extracts from the commercial register, translating proofs of representation, apostilling certificates, filling in KYB questionnaires. Much of this is done manually and involves a lot of paperwork. The result is a slow, error-prone process. According to the European Commission, 55% of SMEs recognise administrative burdens as a major obstacle. Companies currently spend up to 2.5% of their turnover on manual compliance tasks.(1) Fragmentation and administrative complexity are holding back Europe’s competitiveness. The European Commission’s response is the European Business Wallet (EBW). On 19 November 2025, the Commission published its proposed regulation COM(2025) 838(2). This document will fundamentally transform digital business transactions in Europe.
What is the European Business Wallet?
The European Business Wallet is specifically designed for business transactions. It is aimed exclusively at legal entities and economic operators — that is, businesses of all sizes, from sole traders to large corporations. It is used in B2B, B2G and G2G contexts: businesses use it to interact with public authorities, business partners and market infrastructures. The core functions of the EBW include secure identification, electronic signing and sealing, as well as the transmission and receipt of documents. Actions carried out via the EBW have the same legal effect as actions lawfully carried out in person, on paper or by other means. Technically, the EBW is designed as a cloud-based solution. This distinguishes it structurally from mobile, person-specific wallet solutions.
Specific use cases: Where the EBW creates immediate value
The EBW delivers its greatest added value in areas where companies currently experience the most friction.
KYB/KYC automation in the financial sector
The EBW supports financial institutions and regulated bodies in verifying customers’ identities before granting access to services. What currently takes weeks — manual document checks, register searches, translations, and follow-up enquiries — is replaced by machine-readable, cryptographically secured evidence from authentic sources. Banks and financial institutions can automatically cross-check this data against public registers. Onboarding time is potentially reduced from weeks to minutes.
By the way: anyone who wants to start automating now and be EU Wallet-ready should take a closer look at Business-Ident. Identify legal entities, natural persons and authorised representatives in a single digital process. Find out more about Business-Ident here
Cross-border public procurement
The EBW enables companies to store pre-verified evidence. When a tender opportunity arises, the company can submit proof of solvency, a certificate of no criminal convictions and insurance status digitally. The time-consuming document process for every new tender is transformed into a one-off creation and reusable presentation.
Company registration and branches in other EU countries
The EBW enables the registration of a branch abroad. This can be done without the need for physical visits to government offices, apostilles or local notaries for basic procedures.
Representation rights and digital powers of attorney
With EBW, individuals can be digitally authorised to act and sign on behalf of companies for tax compliance, cross-border transactions and invoicing. This offers significant operational benefits, particularly for groups with complex power-of-attorney structures spanning multiple jurisdictions.
Supply chain compliance and digital product passports
The EBW supports the documentation requirements arising from digital product passports and supply chain compliance under European regulations. Suppliers can store certificates, ESG evidence and product attributes as verifiable credentials in the wallet and make these available automatically and verifiably upon request.
What organisations must accept and what remains voluntary
Public sector bodies are subject to an obligation to accept the standard. Public sector bodies at all levels are required to accept the EBW for core functions. They have 24 months from the entry into force of the Regulation to ensure compliance. This includes EU institutions as well as national and sub-national authorities. A transition period of up to 36 months is provided for certain functionalities. For businesses, use is voluntary. The proposal does not impose any obligations on economic operators. It obliges public authorities to enable the use of the EBW for certain functionalities. Businesses, particularly SMEs, retain the choice to adopt Business Wallets and benefit from simplified procedures. The logic is clear: if authorities across Europe are required to offer the EBW as a digital access channel, this creates a strong network effect for businesses. Those who use the infrastructure save time and money. Those who wait continue to operate with analogue processes, whilst competitors are already working more efficiently. Under certain conditions, the self-employed and sole traders can use their personal digital identity to access the EBW’s Trust Services without having to acquire a full-fledged Business Wallet. This ensures proportionate treatment for smaller operators.
The SME perspective: reducing red tape as a tangible benefit
The EBW is structurally designed with European SMEs in mind. The EU Competitiveness Compass sets out an explicit target: to reduce administrative burdens on SMEs by 35%. The EBW simplifies complex administrative tasks, lowers compliance costs and improves interoperability. This enables businesses to operate more efficiently within the Digital Single Market. For an SME that currently has to go through the same process of gathering evidence for every new authority in a different Member State, this represents a tangible reduction in the burden of day-to-day operations. KYB evidence is crucial for onboarding processes in financial services, professional services sectors and supply chain management. For SMEs without their own compliance department, an automated and interoperable solution makes a fundamental difference.
Legislative status and realistic timeline
The proposed regulation COM(2025) 838 was published by the European Commission on 19 November 2025. The proposal is going through the ordinary legislative procedure and requires the approval of the European Parliament and the Council. For operational planning, this means that the Regulation is not expected to enter into force before 2026/2027. Once it enters into force, public authorities will have 24 months to implement it, and up to 36 months for certain functionalities. Companies therefore have a realistic planning window of two to three years before the EBW becomes widely relevant for operations. Some countries, such as Portugal, have already begun implementing a Business Wallet.
What companies should do now
Now: Conduct a readiness assessment. Which internal processes (onboarding, KYB, contract signing, communication with authorities, etc.) stand to benefit most from the EBW? Where do the greatest inefficiencies currently arise due to manual verification and document logistics? In the short term: Monitor market developments and pilot programmes. The WE BUILD consortium is developing production-ready solutions for 13 use cases by September 2027. It is worth keeping a close eye on developments and, where possible, getting involved. In the medium term: Develop an integration strategy. EBW integration is not a one-off measure, but a platform decision that must work in tandem with existing IAM, ERP and compliance systems.
FAQ: The European Business Wallet at a glance
What is the European Business Wallet (EBW)?
The European Business Wallet is a harmonised digital solution. It enables businesses and public administrations to identify and authenticate themselves and to exchange data securely and in a user-friendly manner — with full legal effect throughout the European Union. It is designed as a cloud-based platform and is aimed exclusively at legal entities and economic operators: from sole traders and SMEs to international corporations. The EBW is not a personal identity document nor a mobile wallet for natural persons. It is a professional tool for digital business transactions in the B2B and B2G sectors.
When will the European Business Wallet be launched?
The proposal is going through the standard legislative procedure and requires the approval of the European Parliament and the Council. Once it comes into force, public authorities will have 24 months to ensure acceptance of the Business Wallet — up to 36 months for certain functionalities. The proposed regulation COM(2025) 838 is currently in the preparatory phase in the European Parliament. With a realistic timeframe for entry into force in 2026/2027 at the earliest, followed by a mandatory implementation requirement for public authorities, the European Business Wallet is expected to have a broad operational impact on businesses from 2028/2029 onwards. Businesses themselves can use the EBW on a voluntary basis much earlier.
What are the objectives of the European Business Wallet?
The EBW is positioned as a cornerstone of simpler and more digital business management in Europe. The overarching objectives include reducing administrative burdens by 25% overall and 35% for SMEs, as well as tackling fragmentation and bureaucratic complexity as key obstacles to Europe’s competitiveness. Specifically, the EBW aims to:
- simplify and standardise cross-border data exchange between businesses and public authorities
- eliminate duplicate reporting requirements and redundant document submissions
- make the digital identity of businesses legally secure and interoperable across the EU, and
- serve as a cornerstone of the Digital Single Market.
What can the European Business Wallet do?
The EBW provides core functionalities: secure identification, electronic signing and sealing, and the transmission and receipt of documents via a qualified electronic registered delivery service. Actions carried out via the EBW have the same legal effect as actions lawfully carried out in person, on paper or by other means. With the EBW, businesses can:
- provide cryptographically secured proof of their identity to public authorities and business partners and verify it,
- use legally compliant electronic signatures and seals with full legal effect in all EU Member States, and
- manage verified digital documents such as licences, permits and certificates as Verifiable Credentials.
In addition, a mandate- and role-based authorisation system enables the assignment of representation rights within an organisation. Secure communication with public authorities at all levels takes place via a qualified delivery service.
Who is required to accept the European Business Wallet?
For businesses, the use of the EBW is voluntary. Public authorities are obliged to accept the EBW for core functionalities. They have 24 months from the date the regulation comes into force to ensure acceptance. This includes EU institutions as well as national and sub-national authorities in all 27 Member States. This creates de facto network pressure for businesses: wherever authorities are required to offer the EBW, those businesses that are already EBW-compatible will benefit.
How does the EBW relate to other EU regulations?
The Regulation on the establishment of European Business Wallets complements several existing EU instruments, including the European Digital Identity Regulation, EU company law, the Anti-Money Laundering Regulation (EU) 2024/1624 and the Interoperable Europe Act. The EBW is not an isolated regulatory instrument. It is a unifying element that brings together existing compliance obligations from AML/KYC, public procurement and digital invoicing within a single, interoperable infrastructure.
Does the EBW also apply to small businesses and the self-employed?
Yes. The EBW is designed for businesses of all sizes, from SMEs and micro-enterprises to public administrations. A simplified access option applies to sole traders and the self-employed: under certain conditions, they can use their personal digital identity to access the EBW’s trust services.
