June 15, 2021
Reading Time: 3 min

Single digital wallet and new payment system will appear in the EU in 2022

The European Commission presented a project of a unified digital identity system — European Digital Identity. The digital wallet will allow citizens and residents of the European Union to store documents and receive services through a mobile application. A pan-European payment system — an analog of PayPal, Mastercard, and Visa — is also being developed.

Elena Ruda
Elena Ruda

Chief Development Officer in Immigrant Invest, lawyer

EU to introduce new systems for document storage and payments in 2022

Single digital wallet and new payment system will appear in the EU in 2022

The aim of the innovations is to create simple and secure online systems that will work throughout the EU. For example, ID-card and biometric data can be presented directly through the mobile app of the digital wallet. The new payment system will replace national bank cards, which are valid only in the territory of the state that issued them.

How to use the European Digital Identity digital wallet

The European Digital Identity digital wallet will be released as a free mobile app. It will include:

  • Citizen or resident ID card;

  • a driver’s license;

  • Diplomas, certificates, and certificates of education;

  • Data on bank accounts, debit, and credit cards.

Logging into the app will be available only through the owner’s biometric data: through a fingerprint or retina scan, or through facial recognition.

The mobile application European Digital Identity will allow owners to confirm their identity and age, cross borders, rent cars, apply for loans and tax returns, open bank accounts and apply to universities in any EU country. At the same time, users will decide which personal data they want to share in any given case.

If an EU country already has its own digital identity system, the new application will synchronize with it. The installation of the European Digital Identity application will be voluntary.

The European Commission will develop standards for the collection and processing of personal data by September 2022. At the same time, the technical basis for the launch of the digital wallet in all EU countries will be developed. The overall launch of the application is planned for October 2022.

Login to the app by fingerprint

The European Digital Identity app can only be accessed using the owner’s biometric data, such as a fingerprint. This additionally protects the user’s personal data from cases where the phone falls into the hands of intruders

How the new payment system will simplify money transactions in the EU

In 2021, EU states are using national payment systems with bank cards. Countries are also introducing their own mobile payment applications. Because of this, there are situations where one country’s bank card or app cannot be used to pay in another EU country.

A new pan-European payment system will replace national ones. Citizens and residents of all countries of the region will be able to use a single card and a digital wallet. According to the idearnof the developers, the new system will also replace popular payment services of PayPal, Mastercard, Visa, Google and Apple.

The payment system is based on instant money transfer technology. It allows making transactions in seconds instead of hours or even days, as in the case of bank transfers.

Users of the system will be able to pay for goods, services and bills online and in person, such as when visiting a store. It will also be possible to withdraw cash from the card at an ATM. It is possible that the system will also include transactions using the digital euro.

The system is being developed by 16 major European banks, including Deutsche Bank, BNP Paribas, ING, UniCredit and Santander. The system is scheduled to be launched in mid‑2022.

Online systems for investors

Investors may be allowed to pay for participation in European residency programs through a new payment system. Most countries with programs require payments to come from outside the European Union. But there are exceptions. For example, under the terms of the residence permit program in Portugal, an investor must open an account at a local bank, from which to pay fees and charges under the program.

Holders of passports and residence permits and permanent residence permits of EU countries will have access to the application European Digital Identity. They no longer need to worry about whether they have all their documents with them — all they need to do is install the app once on their smartphone. Government, banking and tax services will also be at their fingertips.

In 2021, it will be possible to obtain a residence permit or citizenship by investment in six European Union countries.

Investors with residence permit and permanent residence permit cards of the European Union can travel visa-free in the Schengen area. They are allowed to stay in any country in the region for up to 90 days per semester. They also have the right to live, learn, work and conduct business in the country of residence.

Maltese citizens travel visa-free to more than 180 countries, including Schengen, Britain, USA, Singapore and Hong Kong. But to get a Maltese passport, the applicant first obtains a residence permit. Then he passes a rigorous due diligence check and after a year or three years, he can apply for citizenship. If the application is approved, the resident invests in the economy of the country from €600,000.

Immigrant Invest is a licensed agent who helps you obtain a residence permit or EU citizenship by investment. If you want to get a second passport or become a resident of a European country, seek advice from experts in investment programs.