- Intermex will not use Ripple’s On-Demand Liquidity solution for its core markets including Mexico. For the time being, the payment service provider will not use the payment solution, which is based on the XRP token.
- Intermex will use the partnership with Ripple to grow and diversify into other markets asancillary products.
In a conference call, the CEO of International Money Express (Intermex) revealed that the company will not use Ripple’s On-Demand Liquidity payment solution. Intermex is a global money transfer company that focuses primarily on the Latin American and Caribbean corridor. It is also one of the largest providers of remittance services from the United States to Mexico.
Cooperation with Ripple suspended?
In early February, the two companies announced a cooperation. According to the initial announcement, the partnership was to be a step towards changing “the status quo” of cross-border payments. However, statements by Intermex CFO Tony Lauro dismiss this possibility for the time being. Lauro stated:
We’re looking at Ripple for a couple of other products which I think we mentioned in the press release. The first of which is RippleNet which, as you know, is their hub connecting financial institutions together which will enable us to onboard new players faster than we would if we were doing direct connections to each one.
In the opening statement in February, Intermex CEO Boby Lisy said something different. In the statement he said that Ripple’s XRP token was “the most efficient token”. Lisy also said he was excited to implement Ripple’s payment solutions, such as On Demand Liquidity, to “drive growth and achieve greater efficiency. In contrast, Lisy’s most recent statements are as follows:
Ripple will not be an answer for places like Mexico. We’re very proud about the relationships we have there . . . we have very tight relationships that strategically setting plans and objectives with those players. And so you won’t really see us leveraging Ripple in our core markets. I think it will bring us more growth in newer markets in places where we’re exploring going into ancillary products
However, Intermex has yet to test Ripple’s payment solutions. According to the CFO the company will start testing Ripple’s payment solutions at some point this year. After the trials, the company will be able to make a better assessment of where and how it will bring Ripple into its business, Lauro said:
(if Ripple’s solutions are effective) we’ll expand it. But it’s too early to say how much we intend to do.
It therefore remains to be seen what results Intermex will achieve in its tests and how Ripple’s technology can be integrated in practice. At the moment the partnership seems to be unclear. As CNF reported, Ripple is paying a certain amount of money to its partner MoneyGram for the use of its ODL technology, according to a 10-K form introduced by MoneyGram at the US Securities and Exchange Commission. According to Brad Garlinghouse, CEO of Ripple, these payments are a kind of “incentive” for its partners to develop and use Ripple’s products.