Industry associations raise concerns over payment requirements in EU’s Digital Identity Regulation
While expressing support for the aims of the eIDAS and the EUDIW, industry associations caution that specific sections of the regulation are subject to interpretation and may necessitate substantial investments from financial institutions, merchants, and global acceptance networks.
European financial institutions and digital commerce entities seek clarification on certain terms used in the EU’s Digital Identity Regulation (eIDAS). They are concerned that the wording of the regulation suggests that it is mandatory for the entire payment process.
In a joint statement, several industry associations express support for the eIDAS and the European Digital Identity Wallet (EUDIW) goals, which aim to streamline onboarding and enhance user experience. However, they caution that specific sections of the regulation are open to interpretation and could potentially require significant investments in the financial sector, merchants, and global acceptance networks.
The signatories argue that this could result in disproportionate costs and increased liability for banks and merchants. They urge lawmakers to make payment requirements non-mandatory in the Digital Identity Regulation and adjust the wording accordingly. Mozilla has also voiced concerns about potential risks to web security and privacy resulting from proposed changes to the eIDAS legislation.
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