- Ripple is a partnership with International Money Express, Inc. (Intermex).
- The cooperation focuses on the Latin America and Caribbean payment corridor and will use the On-Demand Liquidity payment solution.
Ripple announced a few hours ago that it has entered into a collaboration with International Money Express, Inc. or Intermex (NASDAQ: IMXI). Intermex is a global money transfer company that focuses primarily on the Latin American and Caribbean corridor. The partnership will help Intermex leverage RippleNet for faster and transparent cross-border payments between the United States and Mexico.
— Ripple (@Ripple) February 4, 2020
According to the World Bank, Mexico is the third highest remittance-receiving country in the world. Last year, more than USD 36 billion in remittances were received, with the United States leading the list of countries with the highest inflows in the region.
Intermex is one of the largest remittance service providers from the U.S. to Mexico, processing more than 30 million payment transactions worldwide through a network of nearly 100,000 payer locations. Intermex also offers its customers the ability to send money from the United States to 17 countries, including Mexico and Gutemala, and four countries in Africa.
Ripple enables Intermex to provide immediate liquidity without the use of nostro accounts. As a result, transfers can be processed almost in real time as well as fast, inexpensive and transparent. On-Demand Liquidity (ODL), formerly known as xRapid, will be used for the transfers. ODL uses the XRP token, which is used as a bridge currency to convert the different national currencies.
Intermex CEO Boby Lisy said the new partnership is particularly valuable to the company and XRP remains the “most efficient” asset:
We are pleased to have begun the partnership with the Ripple team, and look forward to implementing new solutions on RippleNet and ODL to help drive growth and deliver greater efficiency. XRP remains the most efficient digital asset for settlement with transaction fees at just fractions of a penny.
Since its commercialisation, the spread of ODL has grown steadily, so today ODL is used in the following payment corridors: USD-MXN, USD-PHP, AUD-USD and PHP, and EUR-USD. For further expansion, further corridors in APAC, EMEA and LATAM are also to be developed this year.
Among the well-known customers using ODL are MoneyGram, GoLance, Viamericas and FlashFX. MoneyGram CEO Alexander Holmes is enthusiastic about ODL and describes that the company now processes more than 10% of its transaction volume to Mexico via ODL and plans to open up further payment corridors in the near future:
What I love about ODL is that we’re completely at the forefront of this technology … We’re able to settle billions of dollars in seconds. The magic really comes from pairing MoneyGram transactions with Ripple’s ODL.
Transaction volume of ODL increases rapidly
The latest quarterly report published by Ripple shows that the transaction volume of ODL has increased by more than 390% compared to the previous quarter. In addition, the transaction volume of the payment corridor to Mexico reached a new all-time high a few days ago.
Ripple CEO Brad Garlinghouse also announced that the company plans to make an Initial Public Offering (IPO) for further expansion. The community is facing this step with mixed feelings and is discussing whether this will have a positive or negative impact on the price of XRP.
The price of XRP showed a positive reaction to the news, rising by 10.40% to a price of USD 0.2789 within the last 24 hours.