BSP welcomes LYKA’s plan to apply as Operator of Payment System

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.

“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. —Ted Cordero/KG, GMA News