BSP: Lyka should register as payment system operator

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THE Bangko Sentral ng Pilipinas (BSP) has denied the request of Digital Spring Marketing and Advertising Inc. (Digital Spring) to be registered as an Operator of Payment System (OPS) of the Lyka/Things I Like Company Ltd (TIL) payment system.

The BSP upheld the cease-and-desist order (CDO) issued against Digital Spring on July 23, 2021, reiterating that Lyka/TIL and not Digital Spring should register as OPS with the BSP.

The BSP transmitted a letter to Digital Spring on its denial of the firm’s requests for reconsideration. Because of this, the CDOs against Lyka/TIL and Digital Spring dated July 23 are affirmed and shall remain effective until Lyka/TIL properly registers as an OPS in accordance with law and regulations.

“Think of an OPS as a pilot who must personally obtain a flying license to prove that they possess the necessary skills and training to safely operate a passenger aircraft,” said BSP Deputy Gov. Mert Tangonan in a statement Friday, Oct. 8, 2021.

“Digital Spring applying for registration, instead of Lyka/TIL itself, is like saying the airline ticketing office can apply for a flying license on behalf of the pilot. It is the pilot who must apply for the license,” he added.

To date, Lyka/TIL has yet to register as an OPS.

OPS may be cash-in service providers, bills payment service providers and entities such as payment gateways and merchant acquirers that enable sellers of goods and services to accept payments, in cash or digital form.

Lyka/TIL is a popular app in the Philippines owned by a Hong Kong-based company that allows people to earn Lyka GEMS or gift cards in electronic mode for posting, sharing and liking content. These GEMS could be used as payment for goods and services.

These activities make Lyka/TIL, according to BSP, an OPS and, therefore, its registration is required before it can continue with these activities.

The BSP said it enables safe, convenient and cost-saving digital payments services to the public for their payment needs. In the process, the BSP oversees payment system operators to protect consumers, merchants, banks and other payment system participants.

“For its continuous protection, the public is reminded to only use the payment services of a registered OPS,” the BSP said. (JOB with PR)

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