Bangko Sentral orders LYKA app to stop payment system operations

There have been many local celebrities and vloggers who endorsed LYKA, a social media and e-commerce app. Don’t count the Bangko Sentral ng Pilipinas (BSP) as a fan, as they have temporarily suspended the platform’s operation as an Operator of Payment System (OPS).

Given that Lyka uses GEMs (gift cards in Electronic Mode) as payment for goods and services, the central bank ascertained that the said activities make the app an OPS. With that said, an OPS is required to register with BSP. The platform expressed its willingness to comply.

The BSP orders Lyka to suspend its operation as an Operator of Payment System and was invited to register with the BSP, the central bank said in a statement. | via @JessFenol pic.twitter.com/U89j8zLgik

— ABS-CBN News (@ABSCBNNews) July 23, 2021

The Monetary Bank also addressed other companies operating payment systems in its press release, saying that they should agree with the requirement under the NSPA and BSP Circular No. 1049 to register with the BSP. Those that fail to observe the rules may be ordered to halt operations until immediate action is taken to abide by the BSP.

‘In order to protect the public interest, the public is encouraged to immediately report unregistered OPS to the BSP through our Payment System Oversight Department,’ said BSP Governor Benjamin E. Diokno. The public is advised to transact with BSP-certified OPS that can be found on its website. You may view the list here.

Banner: Rappler and Facebook/Lyka

The post <b> Bangko Sentral orders LYKA app to stop payment system operations </b> appeared first on WE THE PVBLIC.

Source: we the pvblic