eIDAS: the european regulation on digital identification benefiting businesses

The eIDAS Regulation (electronic IDentification, Authentication, and trust Services) is a cornerstone of the European digital single market. This regulation, in effect since 2014, establishes a legal framework for electronic identification and trust services, facilitating secure electronic transactions among citizens, businesses, and public administrations across the European Union.

Benefits of eIDAS for businesses 

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usinesses are one of the primary groups benefiting from the eIDAS regulation. Among the advantages it offers are: 

• Cost reduction and increased efficiency: eIDAS enables businesses to conduct processes electronically, eliminating the need for physical documents and processes. This reduces administrative costs and enhances management efficiency. 
• Enhanced security and trust: It sets high-security standards for electronic transactions, boosting confidence among consumers and businesses in e-commerce and other digital interactions. 
• Access to a broader market: It facilitates businesses’ expansion into other EU countries, as they no longer need to adapt to different national legal frameworks for electronic identification and trust services. 
• New business models: It opens the door to new business models based on electronic identification and trust services. Companies can offer new services to their customers, such as electronic document signing or secure online authentication. 

Examples of use cases 

The eIDAS regulation applies to a wide range of use cases. For instance, it enables businesses to securely and legally sign electronic documents. It also enables secure online authentication, helping to prevent fraud and identity theft. Moreover, the framework facilitates access to online public services in other EU countries for citizens, using their own national electronic identification system. It also contributes to facilitating cross-border electronic transactions between businesses and consumers in the EU. 

The regulation has had a positive impact on the European digital single market. It has increased confidence in electronic transactions, reduced administrative costs, and facilitated businesses’ expansion into other EU countries. The launch of eIDAS2, an enhanced and expanded version, will encourage more territories to join initiatives proposed by the framework, such as enabling secure identity wallets. 

Specific advantages of eIDAS for SMEs 

Small and medium-sized enterprises (SMEs) are a key pillar of the European economy. However, they often have fewer resources than large companies to invest in technology. This can hinder their adoption of new technologies that could help improve their efficiency and competitiveness. 

The eIDAS regulation offers several specific advantages for SMEs, which can provide solutions to overcome these challenges: 

1. Cost reduction: 

Elimination of the need for physical documents and processes: eIDAS allows SMEs to carry out a variety of procedures electronically, eliminating the need to print, send, and store paper documents, saving SMEs a significant amount of money in administrative costs. 

Secure online authentication: It allows SMEs to securely authenticate their customers online, reducing the risk of fraud and identity theft, protecting their data, and avoiding costly financial losses. 

Access to a broader market: eIDAS facilitates SMEs’ business expansion into other EU countries. SMEs no longer need to adapt to different national legal frameworks for electronic identification and trust services. 

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1. Increased efficiency: 

Process automation: eIDAS allows SMEs to automate a range of processes that were previously carried out manually. This can free up time and resources that SMEs can dedicate to other more important activities. 

Improved customer experience: By offering their customers a faster, more convenient, and secure experience, it enhances long-term satisfaction and loyalty. 

Increased productivity: eIDAS can help SMEs increase their productivity by facilitating collaboration among employees, suppliers, and customers. 

1. Greater security: 

High level of security: It sets high-security standards for electronic transactions, helping SMEs protect their data and computer systems from cyber attacks. 

Fraud prevention: It prevents fraud and identity theft by securely authenticating their customers. 

Regulatory compliance: In terms of data protection and security of electronic transactions. 

Examples of how SMEs are using eIDAS 

• A small e-commerce company uses electronic signature to allow customers to sign their orders online without the need to print and send them by postal mail. 
• A professional services company uses secure authentication to protect access to its cloud-based applications. 
• A mechanical workshop uses eIDAS to access online public services from the local administration. 

The future of eIDAS 

The eIDAS regulation is a living legal framework that is constantly adapting to new technologies and market needs. The European Commission has launched a review of the eIDAS regulation (known as eIDAS2, as mentioned earlier) to ensure that it remains relevant and effective in the future. 

Below, we explain some specific examples of how businesses are leveraging the benefits of the eIDAS regulation: 

In the field of electronic signature, various entities have adopted this technology to offer online services without the need for in-person procedures. This has resulted in a significant reduction in administrative costs. 

Furthermore, secure authentication has become a common practice among businesses as a means of protecting access to their online platforms and applications. This not only enhances data security but also strengthens customer confidence in the services provided. 

In the public sector, several governments have implemented electronic identification systems based on eIDAS, enabling citizens to efficiently access a wide range of online services. This has led to more effective and accessible administration for citizens. 

Moreover, in the realm of e-commerce, some companies have adopted the eIDAS regulation to facilitate cross-border transactions on their platforms. This has contributed to increased sales and expanded the reach of these companies in the European market. 

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