MANILA—Social media application Lyka on Saturday said establishments refusing to accept their "gems" in exchange for products is only temporary, as it settles licensing issues with the Bangko Sentral ng Pilipinas (BSP).

In an Instagram Story, Lyka said the BSP has released a circular ordering it to suspend transactions until an operator of payment system (OPS) license is issued.

"All the additional requirements requested by the regulatory body have been submitted. We will make the necessary announcement once we received the official statement," Lyka said.

• READ: BSP orders Lyka to suspend payment operations, register with regulator

"We look forward to the issuance of the license so that our partner merchants can accept Lyka GEMs again."

Lyka, which operates in the Philippines and is backed by a Hong Kong company, allows users to purchase, exchange and use "gift cards in electronic mode", or GEMs, as payment for goods and services, according to the regulatory body.

An OPS could be a cash-in service provider, bills payment, payment gateway, payment facilitator or merchant acquirer that enables sellers of goods and services to accept payments in cash or digital form, it added.

Despite the developments, the social media application said this is the "best time" to accumulate the electronic gift cards for future use.

Celebrities and vloggers have been promoting the social media app.

Digital financial transactions have surged during the COVID-19 pandemic as Filipinos sought ways to continue daily tasks without leaving their homes.

• BSP's digital dream: Electronic payments for sari-sari stores, tricycle drivers

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