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EU Digital Wallet Rollout Faces Uneven Adoption And Privacy Concerns

The EU’s digital identity wallet is moving toward wider adoption, but member states are progressing at different speeds as businesses and banks prepare for mandatory acceptance.

A Wallet For Everyday Identity

The free wallet is designed to store essential documents, including national ID cards, driving licenses, diplomas, health insurance information and bank details. EU officials say its main safeguards are selective disclosure, unlinkability and issuer-blindness, allowing users to share only the information required for a transaction while limiting third-party tracking.

Use of the wallet will remain optional. Citizens can continue using paper documents and existing identification methods, allowing the EU to present the system as a convenience rather than a requirement.

Adoption Remains Uneven

Italy has emerged as the frontrunner, with nearly 8 million monthly users. Germany is not expected to launch until January 2027, while the Netherlands has pushed its rollout to late 2027 after a pilot attracted only 57 users.

Bulgaria is still working on the legislation needed for implementation. The uneven progress reflects differences in national infrastructure, political support and public trust, all of which could affect the wallet’s cross-border adoption.

Businesses And Banks Face Deadlines

Businesses across the EU will be required to accept the wallet by Dec. 24, 2027. Banks face an earlier deadline of July 2027 because of anti-money-laundering requirements and their role in identity verification and risk controls.

Digital authentication could affect areas such as customer onboarding, transaction monitoring and fraud prevention, making implementation particularly significant for financial institutions.

Privacy Concerns Remain

Digital rights advocates have raised concerns about the system’s privacy safeguards. EDRi has warned about draft rules that could require facial recognition and weaken certain protections.

As the rollout progresses, policymakers will need to balance security and usability with privacy safeguards in a system designed for everyday use across the EU.

LVMH Revenue Rises, But China Weakness Continues To Weigh On Luxury Giant

A Softer Quarter Exposes The Limits Of Luxury’s Recovery

LVMH, the world’s largest luxury group and parent of Louis Vuitton, Dior, Celine and Hennessy, reported revenue of €18.5 billion in the three months to the end of September, underscoring both the scale of its business and the pressure building across parts of the luxury market.

The company’s revenue rose 1.2% year on year in the third quarter, following a 0.1% increase in the second quarter and a 5.9% decline in the first. The trajectory points to stabilization, but not yet to a convincing rebound.

Organic Growth Misses Expectations

Organic sales growth, which strips out currency effects and portfolio changes, slowed to 1% in the third quarter from 3% in the previous quarter. That result fell short of market expectations and reinforced concerns that the luxury cycle remains uneven.

For the first nine months of the year, LVMH generated sales of €57.1 billion, with organic growth of 2%.

In its statement, the company highlighted the breadth of its portfolio, saying that diversification continues to provide resilience in an uncertain geopolitical and economic environment. That remains one of LVMH’s defining strengths: when one category weakens, another can help offset the downturn.

China Remains The Key Pressure Point

LVMH said sales performed well in the United States, Europe and Japan, but conditions in China remained less favorable. That matters because the country has long been one of the most important growth engines for global luxury brands.

The fashion and leather goods division, LVMH’s most closely watched unit, saw organic sales fall 5% as weaker demand in China weighed on performance. Deutsche Bank said the decline was steeper than the roughly 2% drop expected by analysts.

The segment had delivered its first organic sales gain in two years in the previous quarter, making the latest retreat a notable setback.

Brand Equity Faces A Test In China

The quarter also highlighted the reputational risks facing global brands in China. Louis Vuitton drew criticism after suing local tea company Molly Tea over logo copying. Although the company won the case, the dispute sparked social media backlash and boycott calls, adding another layer of pressure to an already fragile environment.

For a company built on scarcity, aspiration and brand discipline, perception is an asset as valuable as inventory. In a market as digitally connected as China, that asset can shift quickly.

Mixed Performance Across The Portfolio

Not every division weakened. LVMH’s selective retailing business, which includes Sephora, posted an 8% organic sales increase. Watches and jewellery, along with wines and spirits, both recorded 6% organic gains.

That broad mix is precisely what has historically given LVMH an advantage over rivals: it can absorb softness in one category without relying on a single growth driver.

Analysts See A Longer Recovery Ahead

Deutsche Bank analysts said the results could lead to further cuts in earnings forecasts for the second half of 2026 and 2027. They added that it is difficult to see what could improve investor sentiment in the near term.

Still, the bank framed the weakness as cyclical rather than structural. In its view, recovery is taking longer because Chinese demand remains subdued, but the problem does not appear to reflect a permanent deterioration in the brand franchise. Analysts said ongoing brand initiatives are beginning to show results, though improvements are likely to remain gradual.

Investor Pressure Continues To Mount

LVMH’s share price has fallen nearly 40% since the start of the year. In September, L’Oréal overtook the group as France’s most valuable listed company, a symbolic shift that captures how sharply sentiment has changed.

Shares in LVMH were down more than 1.6% in Paris around 10 a.m. CEST following the release.

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