Given the expanding number of online frauds and the request to guarantee a higher level of online transaction security, European Union plans to introduce mandatory identity verification for all digital transactions. These changes aim to defend both consumers and businesses from the increasing threat of cybercrime.
New EU regulations on identity verification
According to the latest information, by September 2025 the full European Union is to be introduced mandatory identity verification for each online transaction, regardless of its value. This means that users will gotta confirm their identity on each transaction, which will importantly affect the way they acquisition and usage digital services.
Changes in KYC procedures
The “Know Your Client” (KYC) procedures aim to prevent money laundering and terrorist financing by identifying and verifying client identity. The fresh rules require entrepreneurs to collect more detailed individual data of users and to implement rigorous identity verification procedures. In practice, this may mean providing additional identity papers and passing through the verification process, which may affect additional activities for users.
Compliance with the GDPR
The introduction of mandatory identity verification raises questions about the compliance of these procedures with data protection rules, including GDPR. Companies will be required to supply adequate safety measures to defend individual data from unauthorised access. It is crucial that the verification process complies with the requirements of the GDPR, which means, among another things, obtaining the user's consent to the processing of his data and providing him with access to information about processing.
Introduction of e-Services
As of 1 January 2025 the strategy has been in force in Poland e-Serviceswhich enables the electronic transportation of authoritative and business correspondence. Businesses are required to have an e-Service address, allowing for unambiguous recognition of the sender and the addressee and ensuring the safety and integrity of the data transmitted. The introduction of this strategy aims to simplify the circulation of papers and to increase the efficiency of electronic communications in the economical world.
Changes in cash payment limits
New limits for cash payments are introduced throughout the European Union. For transactions exceeding EUR 3 000 Identity verification will be required to reduce the usage of cash in advanced value transactions and increase transparency of financial transactions. These changes besides aim to prevent money laundering and another illegal financial practices.
Future of digital payments
The introduction of mandatory identity verification for each online transaction and another payment regulations is intended to increase the safety of digital trading. However, these changes may affect user comfort and speed. In the future, we can anticipate further changes in the way transactions are authorised, specified as the usage of biometrics or advanced authentication methods, which aim to guarantee safety while maintaining user convenience.
The upcoming changes in the verification of identity in online transactions aim to increase the safety and transparency of digital trading. Entrepreneurs and consumers should prepare for fresh procedures that may influence the way individual data are carried out and processed. It is crucial to be aware of the forthcoming changes and to adapt to fresh regulations in order to guarantee compliance with the applicable rules and avoid possible sanctions.
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Mandatory identity verification on each online transaction? Change is coming
