What is the meaning of eID?
eID is short for electronic identification and describes a digital passport solution to proof the identity of a citizen or an organization. It can be used to access services provided by government authorities, banks or other companies.
Key characteristics of eIDs
- Digital proof of identity: Enables secure online authentication without physical documents.
- Smart card and NFC technology: Embedded chips in ID cards or smartphones transmit identity data via Near Field Communication (NFC).
- PIN-protected and encrypted: Users authenticate with a personal PIN, and all data transfers are end-to-end encrypted, ensuring only authorised parties can access identity information.
Examples of eIDs
- The German national ID card (Personalausweis) and residence permit both carry an eID function, usable via the official AusweisApp on an NFC-enabled smartphone with a 6-digit PIN.
- The EU Digital Identity Wallet, under development as part of the revised eIDAS 2.0 regulation, will allow citizens across member states to carry and share verified digital credentials from a single app.
Use cases of eIDs
eIDs are used wherever secure identity verification is needed remotely:
- Opening bank accounts
- Accessing tax or benefits portals
- Signing contracts
- Verifying age
Within the EU, the eIDAS framework (Electronic Identification, Authentication and Trust Services) governs cross-border mutual recognition of eIDs, meaning a German eID can in principle authenticate a user with a service in another EU member state.
How identity verification works with eIDs
When a user initiates an identity verification — for example, opening a bank account or accessing a government portal — they hold their ID card to their NFC-enabled smartphone. The AusweisApp (or equivalent) reads the chip, the user enters their PIN, and encrypted identity attributes (such as name, date of birth, or nationality) are transmitted to the requesting service. No document scan or video call is required.
How IDnow Makes eID Verification Simple and Secure
IDnow enables businesses to use eIDs as part of secure, remote identity verification processes. By supporting electronic identification methods such as NFC-based document checks and eID wallets, IDnow helps organisations verify identity attributes quickly and securely while reducing reliance on manual document review or video identification. This gives banks, fintechs, telecommunications providers and other regulated businesses a convenient way to meet customer onboarding and compliance requirements while delivering a smooth digital user experience.