A new policy brief from the European Centre for International Political Economy (ECIPE) raises concerns over the European Parliament’s proposed changes to the Payment Services Regulation (PSR), which would expand fraud liability to electronic communications service providers (ECSPs), such as telecom operators, and online platforms.
Parliament’s position diverges markedly from the original proposal by the European Commission, which does not impose liability on ECSPs and online platforms. This new study is particularly timely, as EU Member States still need to agree on a common PSR position.
The ECIPE study warns that shared liability among multiple sectors risks reducing incentives for payment service providers and consumers to actively prevent and avoid fraud. It also highlights the limitations that ECSPs and platforms face under the General Data Protection Regulation (GDPR) and Digital Services Act (DSA), which restrict proactive monitoring.
ECIPE recommends a more balanced approach: advocating for cross-sector collaboration between banks, ECSPs and online platforms; educating consumers on fraud risks; and promoting industry-led anti-fraud standards with incentives for innovation.
