LYKA, which combines e-commerce and social media, said it would set up an office in the Philippines and register as an OPS or operator of payment system, adding it was closely working with regulators.
The app that was made popular by influencers and celebrities stopped operating as a payment system upon orders from the Bangko Sentral ng Pilipinas.
"LYKA Global shall register as an OPS as directed by the BSP and will immediately put up its office in the country," LYKA said in a statement.
LYKA said its partnership with Digital Spring Marketing and Advertising Inc. could be terminated while all contracts entered into by its local partner will be transferrd to the new compay.
"LYKA will continue to closely cooperate with BSP and other regulators in order to keep advancing the truly innovative LYKA GEMs, the first cashless and seamless social media gift card in the world," it said.
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What is LYKA?
The social media platform was launched locally by a Hong Kong-based company and allows users to purchase, exchange, and use GEMs or gift cards in electronic mode as payments for goods and services, making it an Operator of Payment System (OPS).
Users can monetize engagements on their social media accounts and earn GEMs to pay for services ranging from food to luxury cars. More interactions mean more GEMs.
The BSP welcomed LYKA's plan to apply as an OPS: "As regulator of the Philippine payment system, the central bank shall continue to promote policies that foster the welfare of consumers, merchants, banks, and other participants in the country’s payments ecosystem."
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