Discover how EUDI Wallet integration can cut KYC costs by up to 90%, reduce manual verification, improve onboarding speed, and lower compliance risk for businesses.
KYC is costly since businesses have to pay for document gathering, manual verification, fraud detection, support, and the liability associated with storing confidential identity information. The EUDI Wallet will transform this business model as users will be able to provide their government-issued identity credentials and get verified in seconds rather than days.
Today, most KYC processes rely on scanning of passports/ID cards, uploading selfies, OCR, exception handling and rechecks in case there is a mismatch. This whole process generates cost on three fonts: labor, vendors, and liabilities.
Labor costs are generated by analysts and operations staff that are tasked with analyzing edge cases, troubleshooting unsuccessful verifications, and responding to customer support inquiries. Vendor costs are generated by document verification services, liveness detection, screening solutions, and duplicate integration processes. Liability costs are associated with storing more personal data than necessary, thus generating higher security and compliance risks.
With the EUDI Wallet, a user can provide a signed PID credential, or any other approved attribute, directly from a verified wallet. In other words, your business verifies a cryptographically signed assertion from a trusted entity instead of processing a photograph or a document.
This is crucial because selective disclosure allows requesting only what is needed. If you need to verify only age, you do not need to do a full ID scan. If you need only name and nationality for onboarding, you do not need to process a full set of documents. Less data collected means less review time, reduced storage needs and a streamlined onboarding flow.
Typically, the largest savings result from the elimination of inefficient manual processes in KYC, such as manual document reviews, document re-submission due to low-quality images, and continuous customer communication in cases of incorrect document uploads.
In addition, fewer data will be collected when using EUDI Wallet-based verification, which means fewer expenses will arise in terms of security, legal review, retention management, and data breach response procedures. For regulated companies, these savings go beyond privacy improvement: fewer documents stored mean less compliance overhead.
The way to realistically calculate the savings is as follows: if the largest part of your current KYC costs arises from manual processing, corrections and risks related to storage of data, then the integration of the EUDI Wallet will cut off most of those costs. As a result, your KYC costs will reduce by almost 90% but the exact figure will depend on your current process, risk policies and the extent to which you will use wallet-based verification during onboarding.
Integration with the EUDI Wallet doesn’t relieve you of your AML obligations. You will still be responsible for carrying out sanction checks, PEP screenings, monitoring and enhanced customer due diligence. The EUDI Wallet will make identity verification easier, but will not be a substitute for your risk-based compliance approach.
This is crucial in terms of compliance and budgeting. The EUDI Wallet will reduce the cost of gathering and validating identity data, whereas you will continue using your existing AML stack for risk management and monitoring. In other terms, the cost reduction stems from streamlining the process of onboarding, rather than removing compliance altogether.
Traditional eKYC approaches often try to build trust based on images, OCR processing, and probability matching. EUDI Wallet-based verification starts from the opposite end: it’s a signed credential issued by a trusted authority and a wallet that proves ownership. That is a much better trust model and ensures a more user-friendly experience.
It also facilitates customer conversion. As onboarding becomes faster and more streamlined, turning from form filling and document uploads to a simple wallet prompt and providing biometric verification, fewer customers tend to abandon the process mid-way.
For most companies, developing a direct EUDI Wallet integration from scratch is not an option. The EUDI Wallet ecosystem comprises many credential formats, ongoing standardization efforts, trust-list checking, revocation, and numerous national wallet implementations. Handling such a complicated system in-house can be costly and time consuming.
This is why it is advised to use an intermediate layer that will deal with the protocol intricacies, normalize the different wallet responses, and provide a clean API for your product team. For most of the companies, this approach is more efficient and cost-effective than attempting to build and maintain the entire integration stack in-house.
Authbound is designed to be the integration layer for those companies that wish to integrate the EUDI Wallet into their processes. It handles credential presentation, signature verification, trust resolution, and technical aspects of the relying party to help you implement the identity layer without having to build it internally. This results in faster deployment, reduced engineering effort, and smooth transition into compliance with wallet-based authentication.
EUDI Wallet integration is particularly suited for companies whose KYC process is repetitive, volume-intensive and highly susceptible to drop-offs. This applies to fintech onboarding, age verification, marketplaces, telecom registration, travel, insurance and any other process, where you currently collect ID documents only to verify some basic information.
This approach is ideal for companies that are aiming to reduce the storage of personally identifiable information without compromising the reliability of the identity verification process. For teams that have been looking for methods to simplify their verification process while complying with eIDAS 2.0 standards, implementing EUDI Wallet-based onboarding is one of the most promising steps to take.
If your existing KYC process relies on document uploads, manual reviews, and storage of unnecessary information, you are simply paying for inefficiencies at every step of the process. EUDI Wallet integration eliminates many of the costs by helping your company switch from image-based verification to cryptographically signed identity data, and Authbound provides the integration layer to successfully make this switch.
Ready to cut KYC costs and streamline your onboarding process? Contact Authbound to learn how your business can move from document-based verification to wallet-based trust.
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