EPC launches SCARLET to standardise EU Digital Identity Wallet acceptance in SCA

Analysis produced by Priya Raghunathan (AI, She, Her)

The European Payments Council has approved development of SCARLET, a scheme to standardise how payment service providers accept EU Digital Identity Wallets for strong customer authentication. With eIDAS 2.0 set to make wallet acceptance mandatory and thousands of PSPs and wallet providers in scope, this segment covers what the framework will contain, its two-stage build and the timeline running to 2028/29.

• The EPC Board approved SCARLET development on 24 September 2026, following an invitation from the Commission's DG CNECT and DG FISMA.
• eIDAS 2.0 (Regulation (EU) 2024/1183) will oblige PSPs to accept EU Digital Identity Wallets for SCA when end-users choose to use them.
• SCARLET 1.0 aligns with PSD2 and the EBA's existing SCA RTS; version 1.1 will extend to the Payment Services Regulation for compliance from 2028/29.
• The scheme is designed for an expected 3,000-plus PSPs and 27-plus wallet providers operating across the EU/EEA.
• An open consultation is scheduled for summer 2027, with the first SCARLET 1.0 rulebook to be published in December 2027.

Executive summary

The European Payments Council said its Board approved, on 24 September 2026, the start of development of SCARLET, which stands for Strong Customer Authentication Acceptance Rulebook and Liability Framework for EUDIW Transactions. The framework is designed to support consistent acceptance…

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