Lyka’s recent suspension of its operations as ordered by the Bangko Sentral ng Pilipinas has caused panic among partner merchants, who are filing for encashment requests to the social media app.
For the uninitiated, Lyka has its own in-app currency called GEMs, or gift cards in electronic mode, that can be used for real-life transactions. The BSP, however, ordered Lyka to stop using GEMs until it has acquired a license to be an Operator of Payment System (OPS).
And so with its halted operations, partner merchants are requesting in droves to convert their earned GEMs, with some merchants requesting millions of pesos in value. These merchants have also stopped accepting GEMs from customers as a payment method.
Lyka has responded to the encashment requests of its partner merchants, stating that it is committed to servicing their requests within a month.
Lyka’s partner merchants include hotels, restaurants, delivery services, and retail stores.