Fintech Market Overview

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Citizens must possess a citizenship card that contains their civil identification number, taxpayer number, healthcare user number, and social security number (Law No. 7/2007 creating the citizenship card, as amended). The citizenship card proves the identity of its holder to any public or private authorities and entities, through two mechanisms:

• by the reading of the visible elements of the card, together with the optical reading of a reserved area of the card (this optical reading is mainly limited to state or public administration entities or services)
• by means of electronic authentication ¹

The Portuguese citizenship card enables authentication of electronic documents through its electronic signature. The chip contained within the card holds further information such as the user address and fingerprints, plus digital certificates for secure authentication and the qualified electronic signature. Therefore, the holder of this card has two digital certificates available: one for authentication, and another for e-signing.¹

Law No. 7/2007 refers to the eIDAS Regulation in regard to certificates, while Decree-Law No. 12/2021 sets out the Portuguese rules on electronic identification, including e-signatures, seals and time stamps. Moreover, there is a proposal for a Regulation amending the eIDAS Regulation which includes a provision for EU digital identity wallets - to be provided without cost - that could be used as national ID cards, passports or for signing documents digitally.¹

Furthermore, Law No. 37/2014, as amended, created the 'digital mobile key' as an additional and voluntary means of: (1) authenticating electronic systems and internet sites; and (2) providing a qualifying e-signature in the terms indicated in the eIDAS Regulation. An individual may request to associate his or her civil identification number with a mobile phone or email address. It is also possible for foreign citizens without a civil identification number to request this association by using their passport number, their tax identification number on their residence permits (or other documents based on the regime for foreigners' entry, stay, exit and expulsion from national territory) or their residence card. Decree-Law No. 88/2021 of 3 November 2021 has amended Law No. 37/2014 to reflect the growing use of digital mobile keys throughout various industries, as well as the need for improved access to online services due to the coronavirus pandemic. This act simplifies authentication with such a key by offering easy-to-use mobile apps and biometric recognition.¹

Digital onboarding in Portugal

Fintech in Portugal

Fintech in other countries

Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/portugal