Ripple has announced a new partnership with leading money payment services company International Money Express Inc. (Intermex), which will allow faster cross-border payments between the United States and Mexico.
Currently, cross-border payments are complex, slow and cost-inefficient, which is mainly due to the underlying systems. Ripple is working towards changing the current situation for the better.
Intermex, whose services are aimed primarily on Latin America and the Caribbean area, will use RippleNet to provide faster and transparent payment services between the United States and Mexico.
There are millions of people worldwide who send money to their families and loved ones. As the World Bank noted in a press release, Mexico is in third place when it comes to remittance recipients, with the stunning $36 billion remittance streams in 2019. As expected the United States is on the top spot of countries with the highest inbound flow to this region.
Intermex is dealing with more than 30 million transactions a year across a network of 100,000 locations, making it one of the biggest U.S. to Mexico payments service providers. Through the new partnership with Ripple, Intermex will reduce costs and provide more transparency.
Ripple worked in partnership with other financial institutions with the aim of providing global payment solutions as well. For example, MoneyGram International uses RippleNet’s On-Demand Liquidity service. The On-Demand Liquidity (ODL) service would allow even faster and cheaper transactions as it relies on XRP as a real-time bridge between the sending and receiving currencies.
Six months after the ODL service implementation started, Chairman and CEO Alex Holmes revealed that MoneyGram is shifting 10% of its transaction volume between the U.S. and Mexican borders. The company is planning to use the ODL service in four more corridors in 2020.
ODL also disposes of the need for pre-funding accounts in destination currencies, which was handled by financial institutions. This not only frees up capital but would allow some of the most competitive FX rates out there.
ODL is becoming more and more popular and is used by customers from MoneyGram, Viamericas, goLance, and FlashFX. Currently, ODL is applicable in the following corridors:
In 2020 ODL will work on corridors APAC, EMEA and LATAM.
Sometimes time delays in money transfers can prevent very important payments and may result in very serious problems. Ripple wants to help the millions of remitters in sending and receiving their money faster and in a more cost-effective way.