Partner merchants reportedly filed encashment requests to LYKA.
Partner merchants reportedly filed encashment requests to LYKA after the Bangko Sentral ng Pilipinas (BSP) ordered LYKA to halt its operations.
Social media app LYKA was reportedly flooded with encashment requests from partner merchants spooked by the BSP’s decision to halt its operations as an Operator of Payment System (OPS).
Industry sources told The Philippine Star that resorts, hotel chains, jewelry stores, restaurants, and other retail outlets filed for requests to convert their GEMs (gift cards in electronic mode) into cash.
The requests, according to a report on The Philippine Star, range from as low as a few thousands to several millions of pesos.
However, LYKA assured partner merchants that it was committed to service its partners in compliance with the law.
“We wish to inform you that Digital Spring Marketing and Advertising Inc. (Digital Spring) has been continuously in touch with the BSP for the purpose of registering itself as an operator of payment system (OPS), being the official Philippine marketing service provider, licensee and operator of the LYKA mobile application,” LYKA said in a letter issued on Friday.
Sources also told The Philippine Star that some partner merchants said LYKA had acknowledged their encashment requests and had committed to serving this within 30 days.
Aside from immediate encashment requests, partner merchants also temporarily suspended the acceptance of LYKA GEMs from customers until the issue with Philippine monetary authorities was resolved.
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