Friday, March 1, 2024

BSP denies application of Digital Spring as operator of Lyka

​The Bangko Sentral ng Pilipinas (BSP) has denied the request of Digital Spring Marketing and Advertising, 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 on Friday, Oct. 8, a letter to Digital Spring on its denial of the firm’s requests for reconsideration. In view of this, the CDOs against Lyka/TIL and Digital Spring dated July 23, 2021 are affirmed and will remain effective until Lyka/TIL properly registers as an OPS.

“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”, BSP deputy governor Mert Tangonan said.

“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, according to the BSP.

Lyka/TIL allows its users to purchase, exchange, and use Gift cards in Electronic Mode or GEMs as payment for goods and services. These activities make Lyka/TIL an OPS and, therefore, its registration is required before it can continue with these activities, the BSP said.

The BSP, which oversees payment system operators in the country, reminded the public to only use the payment services of a registered OPS.

“An 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,” it said.


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