BSP orders social media app Lyka to stop payment system operations
Ian Nicolas Cigaral (Philstar.com) – July 23, 2021 – 3:26 p.m.
MANILA, Philippines – Bangko Sentral ng Pilipinas has ordered social media app Lyka to cease operations as a payment system operator, claiming the company is not registered to perform such a function.
In a statement released Friday, BSP said it invited Lyka officials to register as a payment system operator (OPS), which the company “has already expressed its willingness” to do.
Lyka is a social media platform launched in the Philippines by a Hong Kong-based company. The app allows its users to buy, redeem, and redeem gift cards electronically, or GEM, as a reward for the platform’s content creators. In turn, users can collect GEM Lyka and use them to purchase items from its partner stores.
“The Monetary Board has established that these activities make Lyka an OPS and therefore is required to register with the BSP, which is necessary before it can continue its OPS activities,” the central bank said.
The central bank has previously reminded the public to deal only with OPS registered with the BSP, which can be collection service providers, bill payment service providers, and entities such as payment gateways, vendors. of platforms, payment enablers and merchant acquirers that allow sellers of goods and services to accept payments in cash or digitally.
Under BSP Circular 1049, SPOs that are required to register, but operate without registration, must be required to comply with registration requirements. Those who do not comply may be ordered to halt their operations until immediate steps are taken to register with the BSP.