Estonia e-Residency: X Infotech Wins Biometrics Contract

by Mark Thompson

estonia is about to make its popular e-Residency program even more accessible. The nation has tapped identity technology company X Infotech to develop a smartphone-based system for remotely verifying applicants’ identities, starting in 2027.

Remote ID Checks Coming to Estonia’s Digital Nation

The move promises faster,easier access to estonian e-Residency for entrepreneurs and digital nomads worldwide.

  • Estonia’s e-Residency program currently requires in-person biometric data collection.
  • X Infotech will develop an app to capture facial images and fingerprints via smartphone.
  • The project,valued up to 3.5 million euros,aims to streamline the onboarding process.
  • The new system must meet stringent EU eIDAS security standards.
  • Estonia anticipates a 20 percent increase in new company creation among e-residents.

Currently, prospective e-residents-foreign nationals seeking access to Estonian services like company formation, banking, and tax-must undergo in-person biometric data collection. The new system will eliminate this requirement, allowing applicants to complete the process entirely remotely.

Q: What makes Estonia’s approach unique?
A: The system will simultaneously verify document authenticity, capture a photo, and collect fingerprints-all within a single service.While these components exist separately, none currently meet the strict eIDAS standards.

“This project represents a new generation of biometric solutions, where advanced algorithms and mobile technology will transform the way users can securely verify their identity anywhere in the world,” said Einars Leps, Sales Director at X Infotech, in a statement.

The tender for the technology was issued in 2024 by the IT and Development Center at the Estonian Ministry of the Interior (SMIT). A total of 12 companies competed for the contract, with X Infotech selected through a competitive dialog process that rigorously tested and evaluated potential solutions.

“What makes the procured service unique is that the verification of the authenticity and validity of the document, taking a photo and providing fingerprints must work together in one service,” noted Kaija Kirch, head of the Identity Services Department at SMIT. “These components are already used separately in several private sector services, but none of them meet the requirements of the eIDAS regulation.”

Economic Impact Expected to Grow

To date, Estonia has granted e-Residency to over 134,500 individuals from 185 countries. The program has already generated an estimated economic impact of 400 million euros (US$468.9 million). Officials predict the fully remote process will further boost the program’s economic significance.

“we predict that the launch of the card-free solution will increase the activity of e-residents in creating estonian companies by at least 20 percent, which means 3-9 million euros ($3.5-10.5 million) in additional tax revenue for the state per year,” said Liina Vahtras, head of the e-Residency program and a member of the board of the Entrepreneurship and Innovation Foundation.


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