Submitting biometric data through a mobile app will make the e-Residency application process more convenient and faster, and is a prerequisite for eventually replacing the current physical card–based e-resident digital identity entirely with a mobile solution. The solution being developed must also meet the European Union’s eIDAS regulation’s stringent security requirements, ensuring that the e-resident digital ID remains usable for authentication and for providing electronic signatures equivalent to handwritten signatures.
“This project represents a new generation of biometric solutions, one where advanced algorithms and mobile technology redefine how users can securely prove their identity from anywhere in the world,” said Einars Leps, Sales Director at X Infotech. “We are proud that Estonia, a global leader in digital innovation, has chosen X Infotech to deliver such a forward-thinking solution.”
According to Kaija Kirch, head of the Identity Services Department at SMIT, the procurement process was complex and time-consuming. “As we were procuring such a solution for the first time, we used a competitive dialogue to find the best provider,” she said. “The competitive dialogue allowed us to negotiate with bidders and to test demo applications developed by them against the requirements we had set. What makes the procured service unique is that document authenticity and validity checks, photo capture, and fingerprint collection must all work together within a single service. Individually, these components are already used in many private-sector services, but none of them comply with the requirements of the eIDAS regulation,” Kirch noted.
Anita Preinvalts, Senior Superintendent of the Identity and Status Bureau of the Police and Border Guard Board (PBGB), confirmed that submitting biometric data via a mobile application is initially planned to be piloted with e-Residency applicants. “If, after using the application for some time, we can be confident in its functionality and quality, we will be able to move to completely contactless biometric data collection. This means that e-residents will no longer need to visit an Estonian embassy to have their biometrics captured. If everything works, we will be able to extend this solution in the future to applicants for other identity documents as well,” Preinvalts said. She added that even after moving to contactless remote identification, all e-Residency applicants will continue to undergo thorough background checks, and the PPA will retain the option to meet applicants face-to-face when necessary, either by inviting them to an Estonian foreign mission or by interviewing them via video.
Liina Vahtras, Managing Director of the e-Residency Programme and Member of the Management Board of Enterprise Estonia, underscored that the goal of developing the new technical solution is to increase the economic impact of the e-Residency programme on the state. “Introducing an application that enables biometric data capture is the first stage on the path toward card-free e-Residency. For foreign entrepreneurs, this means that in the future they will only need a smartphone to apply for e-Residency and to use it when establishing and managing a company,” said Vahtras. “No other country offers such an advanced and convenient opportunity for doing business. Even today, e-residents establish every fifth new Estonian company each year, and we forecast that this figure will soon grow to become every fourth. Thanks to e-resident entrepreneurship, every euro invested in the programme already returns up to ten euros annually to the state budget. This technological leap will ensure that we can make e-Residency work even more effectively for Estonia’s economy and competitiveness by increasing tax revenue for the state,” Vahtras said.
SMIT announced the procurement last autumn, and bidders were tasked with developing a mobile application to verify the authenticity of an e-Residency applicant’s identity document and to enable the capture of biometric data (facial image and fingerprints). The contract partner was selected through a competitive dialogue to test and evaluate potential solutions before a decision was made. Companies with prior experience in providing similar solutions and services were invited to participate in the procurement. In total, 12 companies submitted applications. Riga-based X Infotech, the winner of the procurement, was selected based on points awarded for the quality of the demo applications and the prices offered.
A framework agreement will be concluded with the procurement winner for a 48-month period. The maximum value of the framework agreement is 3 million euros. To date, more than 133,000 people from 185 countries have become e-residents. Currently, more than 63,000 e-resident digital ID cards, valid for 5 years, are in circulation. The cumulative direct economic contribution of the e-Residency programme to the Estonian state has been 388 million euros. Learn more: www.e-resident.gov.ee
