The European Student Card (ESC) aims to enhance student mobility within the European Education Area (EEA), yet its implementation faces institutional resistance, technical challenges, and limited awareness. This study investigates the ESC-TENSION2 project, an Erasmus + KA220-HED initiative launched in November 2023, which aligns ESC adoption with Education 5.0’s technology-enhanced, human-centered learning and Society 5.0’s sustainable, interconnected vision. The research analyzes ESC-TENSION2’s impact on digital mobility and its role in promoting innovation in higher education, addressing barriers while improving inclusivity and efficiency. A qualitative case study approach examines ESC-TENSION2, using its project proposal, anticipated student engagement reports from a pilot involving over 250 students, and secondary website data. Thematic coding maps the project’s components (Student Journey, Student Toolbox, and Operational Integration) to Education 5.0 principles, evaluating their contributions to digital transformation. The project design suggests that the Student Journey will enhance mobility by integrating ESC functionalities (e.g., digital authentication) into academic stages, while the Student Toolbox is expected to enhance adoption through training and tools, mitigating technical and awareness issues. These features support a technology-driven, inclusive education system, reducing administrative burdens and fostering cross-border collaboration aligned with Education 5.0’s creativity and socioemotional objectives. This study highlights ESC-TENSION2’s role in advancing digital transformation in higher education, offering a scalable model for sustainable innovation. It underscores synergies between Education 5.0’s collaborative learning and Society 5.0’s digital equity goals, providing policy insights for broader ESC adoption and reinforcing technology’s role in enhancing education.