The European Payments Council announced the development of SCARLET, a common rulebook and liability framework for payment service providers to accept EU Digital Identity Wallets for strong customer authentication. It responds to the obligation under Regulation (EU) 2024/1183 (eIDAS 2) for providers to accept the wallets when users choose them. The first version will build on PSD2 and the EBA's regulatory technical standards, while version 1.1 will cover the forthcoming Payment Services Regulation. A public consultation is planned for summer 2027 and the rulebook for December 2027.

What it means: EU Digital Identity Wallets will let citizens identify themselves and prove personal details digitally across the EU. In payments, this means someone could approve a transaction or log in to their account with the wallet instead of their bank's own method. The problem is scale: more than 3,000 payment providers and over 27 wallet providers must work together without incompatibilities. Without common rules, each bank would have to negotiate technical solutions and liability with every wallet separately, which would push costs up. SCARLET aims to set who is liable when something goes wrong, which technical specifications apply and how certification works. The initiative started at the invitation of the European Commission and will be developed together with the EBA. For Greek banks and payment institutions, already preparing for PSD3 and the new Payment Services Regulation, the duty to accept wallets needs to be part of their planning. In Greece, the Gov.gr Wallet already gives the public a first experience of digital identity.

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