The Bangko Sentral ng Pilipinas (BSP) has expressed a positive response to Hongkong-based social media platform and e-commerce app LYKA’s plan to register as an operator of payment system (OPS) in the Philippines.
Lyka is a platform that allows users to convert likes and the number of activities or posts by a user into Gift cards in Electronic Mode (GEMs) which they can use to pay for goods and services to the partner merchants of the app.
The central bank wrote in a statement released over the weekend that it “welcomes the reported decision of Lyka/Things I Like Company Ltd (TIL) to apply for registration as an Operator of Payment System under Philippine Laws and regulations.”
“As regulator of the Philippine payment system, the central bank shall continue to promote policies that foster the welfare of consumers, merchants, banks, and other participants in the country’s payments ecosystem,” the central bank reiterated.
Last July, the BSP priorly ordered Lyka to suspend payment operations and invited it to register with the central bank as prescribed under Republic Act 11127 or the National Payment Systems Act (NPSA). (Read more on: BSP Orders Lyka to Stop Operating, Invites Registration)
In August, the central bank once again reminded LYKA to register and to secure a payment operator license “to keep things in order”. (Read more on: BSP Reminds Lyka to Register, Says It Is Closely Watching All Payment Operators)
Finally, last week, LYKA announced that it will apply for an OPS license after the BSP said last week that its marketing arm, Digital Spring, cannot be given the license on its behalf.
However, the BSP noted that it has yet to receive the necessary application-related documentation from the social media platform as of this date.
According to LYKA, their intention to register as an OPS also aims to establish its own Philippine operations and staff it with “the crème de la crème when it comes to business operations and management.”
Moreover, the social media platform also assures its users that any duties and commitments made by DS to the, as well as their accreditation as a partner merchant, will be honored as quickly as possible.
Accordingly, LYKA also commits to maintain working closely with the central bank and other regulators to advance its LYKA GEMs, the app’s cashless social media gift card.
This article is published on BitPinas: BSP Welcomes LYKA’s Plan to Register as OPS