In 2014, the European Commission published the eIDAS Regulation, making digital signatures legal in all EU countries.
This article highlights the impact of eIDAS and takes a look at the amending regulation eIDAS 2.0.
What is eIDAS?
eIDAS is a legal act regulating electronic identification and trust services in the European Single Market. Trust services include e-signatures, electronic seals, time stamps, electronic registered delivery services, and website authentication certificates.
The regulation aims to increase trust in electronic transactions across the European single market and ensure that secure electronic identification and authentication is possible for access to cross-border online services offered by Member States.
eIDAS applies to all 27 member states and prevails over national law. Due to its EEA relevance, Norway, Liechtenstein, and Iceland also implemented eIDAS into their national law.
Thanks to eIDAS, EU companies and citizens can now use electronic signatures and eIDs to conduct business and access online services in a faster and safer way across the EU.
What are the benefits of the eIDAS Regulation?
Besides making electronic interactions safer, eIDAS helps businesses speed up processes, cut costs, and increase profits. Not to mention that it plays a crucial role in improving the EU’s competitiveness worldwide.
1. Time savings
Since digital signatures are now legal in all EU countries, companies conducting cross-border transactions don’t need to collect their customers’ handwritten signatures anymore.
Therefore, businesses can eliminate time-consuming tasks associated with signing processes, such as printing and mailing documents or organizing in-person client meetings.
Moreover, the customers of businesses subject to AML/CFT rules can now use their electronic IDs to prove their identity. Hence, accountants can save time by getting the customer’s identity verified faster before establishing a business relationship with them.
2. Reduced costs
By eliminating the need for in-person meetings, mailing, printing, and scanning documents, eIDAS also cuts the costs associated with these processes.
Thanks to the Regulation, companies can now provide the same secure and high-quality services at a far lower cost.
3. Increased profits and better customer experience
EU-wide acceptance of notified electronic identification schemes makes it easier and safer to provide online services and products to customers from other EU countries.
This helps companies increase their client base and, consequently, their profits. Not to mention it improves customer experience via convenient and secure electronic interactions.
What is eIDAS 2.0?
In June 2021, the EU Commission published a proposal to amend the eIDAS Regulation. The amending regulation, known as eIDAS 2.0, will make it easier and more secure to access online public and private services across Europe. Here’s how:
- It requires all EU countries to notify at least one eID scheme and issue European Digital Identity Wallets based on common technical standards. All EU residents will be able to download the EU Digital Identity Wallet app on their smartphones, laptops, or tablets and use it to store official documents and identify themselves electronically in any EU member state. By 2026, each member state must make a digital identity wallet available to its citizens and accept digital identity wallers from other member states according to the amended regulation.
- It introduces stricter security measures and more rigorous standards across member states.
- It requires Member states to provide technical and organisational measures to ensure a high level of protection of personal data used for identity matching across member states.
- It introduces new trust services such as the electronic attestation of attributes, the electronic archiving, or the recording of electronic ledgers.
- It enables companies covered by anti-money laundering legislation to leverage secure, verified digital identities
Are Penneo Sign signatures eIDAS-compliant?
Penneo is a Qualified Trust Service Provider listed on the EU trust list.
Digital signatures created with Penneo Sign using MitID, MitID Erhverv, .beID, Norwegian BankID, Swedish BankID, passport (via Nets ID Verifier), and the Finnish Trust Network meet the eIDAS requirements for advanced electronic signatures. This means that they can identify the signer with certainty and ensure the integrity of the signed document. Therefore, signers can’t repudiate valid digital signatures made via Penneo Sign.
On top of that, Penneo Sign also allows for the creation of qualified electronic signatures with itsme®. According to eIDAS, qualified electronic signatures have the equivalent legal effect of handwritten signatures.
Penneo’s digital signatures are based on the XAdES and PAdES standards. These are two of the ETSI standards which digital signatures must be based on according to the EU Commission’s Implementing Decision 2015/1506. Thus, the signatures are valid and recognized throughout the EU.
For verifying digital signatures made with Penneo, you can use the Penneo Validator, the EU DSS Validator or Adobe Reader.
Furthermore, Penneo applies a qualified electronic seal to every document, embedding it directly into the signed PDF, much like an ink signature becomes part of a paper document. This seal ensures the integrity of the entire signed document and the authenticity of the signers’ signatures.
Conclusion
eIDAS and its successor, eIDAS 2.0, play a critical role in fostering trust and security in electronic transactions across the EU. By providing a standardized framework for electronic identification and trust services, eIDAS has enabled businesses and individuals to interact digitally in a secure and efficient manner, transcending national borders. The regulation’s benefits include time savings, reduced operational costs, and improved customer experiences, which in turn help businesses grow and succeed.
With eIDAS 2.0, the European Commission aims to further enhance these benefits by introducing the European Digital Identity Wallet, which will allow EU residents to securely store and use their official documents for identification across all member states. The addition of stricter security measures, new trust services, and improved data protection standards ensures that both public and private sectors can safely offer and access digital services across the EU.
Providers like Penneo, with their eIDAS-compliant digital signatures, further solidify the reliability and legality of electronic interactions, ensuring that businesses and individuals can confidently operate in the digital marketplace. As the EU continues to promote seamless and secure digital interactions, the role of eIDAS remains pivotal in the digital transformation of the European economy.
