Guide: Understanding authentication in the European context

Authentication is how digital services confirm that a person or organisation really is who they claim to be. From logging in to a system to signing an agreement online, it plays a vital role in keeping digital interactions secure and reliable.

In the European context, authentication is about more than just technology. It is closely tied to legal certainty, regulatory compliance, and building trust in digital transactions – especially in business, legal, and public sector environments.

What authentication means in practice

´In day-to-day operations, authentication is built into many common digital workflows, from accessing internal systems to onboarding customers or approving and signing documents. The strength of the authentication used is typically matched to the risk and sensitivity of the action being performed.

It is also important to distinguish authentication from identification. Identification is the act of claiming an identity, while authentication provides the evidence to support that claim — a distinction that is particularly important in regulated environments where accountability and auditability are essential.

Trust, legal certainty, and cross-border use

Europe has taken a harmonised approach to authentication, enabling identities and electronic transactions to be recognised across borders. This supports both public services and private organisations operating in multiple countries.

“Authentication is not only a security measure – it is a key enabler of trust and legal certainty in digital processes, helping organisations operate confidently across borders while meeting regulatory requirements.”
— Måns Berglund, Head of Expansion

Authentication and digital identity

Authentication is a core component of digital identity management. It allows organisations to verify users consistently throughout a digital journey, from access and approval to signing and long-term record keeping.
In legal and compliance-driven workflows, effective authentication supports:

• Clear accountability
• Reliable audit trails
• Reduced fraud risk
• Enforceable electronic agreements

Key European regulations and standards

eIDAS regulation

The eIDAS Regulation is the foundation of electronic identification and trust services in the EU. It ensures that electronic identities and signatures can be legally recognised across member states.
eIDAS defines three levels of assurance:

• Low – basic confidence in identity
• Substantial – strong confidence for most business use cases
• High – very strong confidence for sensitive or high-risk transactions

The required level depends on the risk and legal impact of the transaction.

ETSI and GDPR

ETSI standards, such as EN 319 411, define technical and security requirements for trust service providers, supporting compliant authentication mechanisms.

GDPR applies wherever personal data is processed during authentication. Organisations must ensure data minimisation, appropriate security measures, and transparency.

Common authentication methods

Authentication can rely on one or more of the following factors:

• Something the user knows (for example, a password)
• Something the user has (such as a mobile device or secure token)
• Something the user is (biometric data)

Multi-factor authentication combines these elements and is increasingly expected in regulated and high-risk environments.

European and US approaches compared

The EU focuses on harmonisation and legal recognition through eIDAS and ETSI standards. In contrast, the US relies on sector-specific frameworks such as NIST and FIDO. For multinational organisations, this can create challenges when designing authentication processes that meet different regulatory expectations.

Typical enterprise use cases

Authentication is widely used to secure:

• Access to cloud platforms and internal systems
• Customer and partner portals
• Electronic signing and approval workflows

In e-signing scenarios, strong authentication helps ensure that signatories are correctly identified and that agreements remain legally valid.

“Choosing the right level of authentication allows organisations to balance security, compliance, and user experience, ensuring that digital processes remain both trustworthy and easy to use.”
— Måns Berglund, Head of Expansion

Ongoing compliance considerations

To remain compliant, organisations should regularly review their authentication practices, ensure alignment with applicable regulations, and maintain clear documentation and audit trails. By approaching authentication as both a technical and regulatory consideration, organisations can support secure digital operations while building long-term trust in their digital processes.