EPC to create EU Digital Identity Wallet framework for PSPs

The European Payments Council is starting work on a standardized framework for EU Digital Identity Wallets. This is a major step toward changing how customers verify their identity when applying for credit or making payments. For retailers and service providers, this means the future of 'Know Your Customer' (KYC) checks will be significantly faster and more secure. Instead of customers manually uploading ID photos or entering social security numbers, they will likely use a government-backed digital wallet to instantly share verified data. While this is a European initiative, it sets a global precedent for how payment service providers (PSPs) and lenders interact with consumer data. If you offer financing at the point of sale, this technology will eventually reduce application friction. It will also lower the risk of identity fraud, which remains a primary concern for high-ticket merchants in furniture, automotive, and jewelry. The framework aims to ensure that no matter which digital wallet a customer uses, the experience for the merchant remains consistent and interoperable across different payment providers.

Source: Finextra — Lending

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