Potential changes to European rules on mobile payment processing could hinder SMS donations, according to the Institute of Fundraising. 

The European Central Bank has put forward recommended changes to the EU Payment Services Directive which could see SMS donors required to take steps to confirm their identity after having made a donation. This could be through something like a PIN code, a token or fingerprint. 

The changes are designed to improve security in mobile transactions, but the Institute is concerned that by adding another step in making a donation some gifts may be abandoned. 

Institute policy officer Caroline Drummond said that text donations have become increasingly popular among donors precisely because they are quick and easy to make. “We know that the more steps that the donor has to go through, the less likely it is that they will complete the donation,” she said. 

Given the typically low value of SMS donations - £5 or less - the Institute is calling for charitable donations to be categorised as “low-risk transactions” and exempted from the proposed rules. 

PhonepayPlus, the regulator for premium-rate services in the UK, has been in discussions with charities about the possible impact the ECB recommendations might have. “PhonepayPlus is aware of charities’ concerns and views on this issue and we are engaging with the sector and the UK government ahead of their response to the consultation,” a spokesman said. 

The consultation will close on 31 January.