Payment Services Regulation: Telecoms industry warns against missed opportunity for a balanced, future-proof approach to fraud prevention

Brussels, 27 November 2025: The GSMA and Connect Europe, the industry associations representing Europe’s telecoms operators, acknowledge political agreement reached by the European Commission, the Council and Parliament on the Payment Services Regulation (PSR). The agreement marks an important step toward reforming EU rules on consumer protection and impersonation fraud.  However, the final agreement risks falling short of delivering the proportionate, workable framework needed to make fraud prevention effective and sustainable.

Fraudsters are increasingly sophisticated, exploiting digital vulnerabilities and adapting rapidly to new safeguards. Unfortunately, provisions shifting the liability to telecoms operators ignore their limited role in the payments value chain and risk creating an untenable legal environment that could weaken cooperation rather than strengthen it.

The industry supports the creation of a Fraud Prevention Coordination Platform, as outlined in Article 59, but its effectiveness will depend on a clear mission, balanced representation, and confidentiality safeguards. The platform should focus on sharing intelligence and harmonising interpretations—not introducing rigid technical mandates that risk becoming obsolete.

We regret that the Regulation does not fully embrace the principle of harmonisation and simplification. Fragmented interpretations of EU law continue to delay the implementation of technical measures across Member States. Without clear, consistent rules, operators and financial institutions cannot scale best practices or respond quickly to evolving fraud tactics.

Telecoms operators already invest heavily in fraud prevention, deploying advanced tools such as API-based solutions under the GSMA Open Gateway initiative to enable real-time detection of SIM swaps and suspicious activity. These efforts, combined with consumer education and awareness campaigns, are essential. Yet, without regulatory flexibility and incentives for innovation, it will be increasingly difficult to scale these solutions and continue to innovate.