European Payments Council launches SCARLET rules for EU digital identity wallet payments

The European Payments Council has launched SCARLET, a rulebook to standardise how EU Digital Identity Wallets are accepted for payment authentication across more than 3,000 payment providers and an expected 27 wallet providers. It sets common interoperability and liability rules, working with the European Commission and European Banking Authority, with a first version due in December 2027. The step ties government-backed digital identity directly to access to payments across the bloc, a structural move toward centralised, identity-linked economic participation that warrants watching, though it is presented as optional authentication rather than compulsory control.