BSP welcomes Lyka’s plan to register as OPS

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) continues to promote policies to foster the welfare of consumers, merchants, and banks as it welcomed the decision of social media platform Lyka to register as an operator of payment system (OPS) as mandated by law.

An OPS refers to 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.

“The BSP welcomes the reported decision of Lyka/Things I Like Co. Ltd. to apply for registration as an OPS under Philippine laws and regulations,” the BSP said.

The regulator said it has yet to receive the appropriate application-related documents from Lyka or Things I Like as mandated under Republic Act 11127 or the National Payment Systems Act (NPSA) and BSP Circular  1049.

Last July 21, the BSP   ordered the revocation of the OPS provisional certificate of registration awarded to Digital Spring. The order also directed Digital Spring to cease-and-desist (CDO) from performing cash-in service, merchant accreditation and settlement process, on behalf of Lyka or Things I Like.

The BSP last week upheld the CDO issued against Digital Spring and reiterated that Lyka or Things I Like and not its marketing arm should register as OPS.

Lyka, launched in the Philippines by Hong Kong-based Things I Like in 2019, allows its users to purchase, exchange, and use gift cards in electronic mode (GEMs) as payment for goods and services. It has 10 million registered users and is being endorsed by well-known celebrities and influencers in the country.

In a video message posted in the company’s social media platforms last Oct. 12, Lyka chief executive officer Ryan Baird announced that the social media platform has decided to register as an OPS with the BSP and put up an office in the Philippines.

“I’m happy to announce that Lyka is coming to the Philippines. We are now in the process of setting up our own office in Manila, hiring the most qualified country managers to oversee management, and the best support team to handle the operations in the country,” Bair said.

Lyka’s Philippine operations would complement the group’s growing roster of wholly owned subsidiaries in the US, South Korea, Malaysia, and Indonesia.

“Lyka Philippines will be a wholly owned subsidiary. This mean that Lyka will operate on its own, register as an OPS, and will continue to closely cooperate with the BSP and other regulatory bodies,” Baird said.

The operator of the social media platform decided to end its partnership with Digital Spring.

“Let me assure all the merchants and partners of Digital Spring that there’s no need to worry. All of the existing contracts, obligations, commitments and signed agreements, shall be honored by Lyka Philippines and will be transferred to the new company as seamlessly as possible,” Baird said.