BSP requires Lyka to comply with registration to resume ops

    The central bank reminds the public to transact with operators of payment system (OPS) that are registered with the Bangko Sentral ng Pilipinas.
    According to the BSP, these OPS may be cash-in service providers, bills payment service providers, and entities such as payment gateways, platform providers, payment facilitators and merchant acquirers that enable sellers of goods and services to accept payments in cash or digital form.

    MANILA — Lyka, a social media app has been ordered by the Bangko Sentral ng Pilipinas to halt its operation as a payment system operator. The BSP says Lyka is not registered to operate in such manner and must therefore stop.

    The BSP says they invited officials of Lyka to register as an operator of payment system (OPS), which the company “already expressed their willingness” to do.

    Lyka, a Hong Kong-based social media platform launched in the country that allows its users to transact payment by purchasing, exchanging, and using Gift cards in electronic mode (GEMs) as reward to content creators in the platform. The users in turn can collect Lyka GEMs and use them to purchase items from its partner stores. The GEMs work like an in-app currency that may be spent within the app.

    Meanwhile, as early as February, the Computer Professionals’ Union (CPU) has warned Filipinos against Lyka for some promised monetary rewards.

    “Getting monetary rewards just from participating in a social media platform may seem like a dream come true for many people, but you may just end up an unwitting subjects for a large-scale market research.,” tweeted CPU.

    “The Monetary Board has ascertained that these activities make Lyka an OPS and is thus required to register with the BSP, which is needed before it is allowed to continue with its OPS activities,” says the central bank.

    The central bank directs Lyka to comply with registration requirements or halt its operations until compliance is achieved based on BSP Circular 1049. (RA/The MiNT)

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