Monetary authorities responded positively to the plan of social media platform LYKA to apply as an Operator of Payment System (OPS) with the central bank, according to a recent news item of GMA News Online.
“The Bangko Sentral ng Pilipinas (BSP) 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,” the BSP said in a statement released over the weekend.
Early this month, LYKA said it respects the findings of the central bank that it should apply itself as on OPS and not through a local third party, Digital Spring Marketing and Advertising Inc.
“In line with this development, LYKA Global shall register as an OPS as directed by BSP and will immediately put up its own office in the country,” it said.
LYKA made the statement after the BSP upheld its cease-and-desist order against it as the central bank reiterated that LYKA/TIL and not Digital Spring should register as an OPS.
The central bank said that LYKA/TIL allows its users to purchase, exchange, and use gift cards in electronic mode or GEMs as payment for goods and services.
These activities make LYKA/TIL an OPS and, therefore, its registration is required before it can continue with these activities, the BSP said.
“As of date, the BSP has yet to receive the appropriate application-related documents from Lyka/TIL,” the central bank said.
“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,” it said.
As part of their effort to open a Philippine office, LYKA had commenced sourcing for a country head and the best support team for an internal Philippine arm.
The use of LYKA Gems is quite popular even among local celebrities like Aiko Melendez, Ivana Alawi, JC Tiuseco, Kate Valdez, Glenda Garcia, and Lotlot de Leon, and even successful business people like Unfiltered Skin Essentials founder and CEO Rina Navarro.
Rina Navarro hopes that LYKA can operate soon to continue the Entertainment and kindness they have been giving its users. Its a super app that should be supported as it has been a big help in boosting sales of Philippine owned companies during the pandemic.