Sending global payments should be easy and cost-effective. Yet, the underlying systems are complex and fragmented, leading to high foreign transfer fees and costly delays. Together with our customers, Ripple is working to solve the challenges with slow and expensive cross-border payments. Nowhere is this more important than remittance flows to low- and middle-income countries where the need for instant, low-cost payments are a necessity.
In an important step in changing this status quo, Ripple is thrilled to share a new partnership with International Money Express, Inc. (Intermex) (NASDAQ: IMXI)—a leading money remittance services company focused primarily on the Latin America and Caribbean corridor. The partnership will enable Intermex to leverage RippleNet for faster, transparent cross-border remittance services between the United States and Mexico.
More remitters than ever are sending money home to their loved ones through this corridor. According to the World Bank, Mexico is the third highest country with remittance recipients, $36 billion remittance flows in 2019—with the U.S. topping the list of countries with the highest inbound flow to this region.
Intermex is one of the largest U.S. to Mexico remitter service providers in the world—processing more than 30 million payment transactions a year through a network of 100,000 payer locations. Through this partnership, Intermex will be able to settle key currencies and match the timing of funding with its settlement requirements reducing costs and providing transparency to their customers.
Other financial institutions are also working in partnership with Ripple to provide global payment solutions across this important remittance corridor—and seeing tangible results. One way our customers are doing this is by leveraging RippleNet’s On-Demand Liquidity service, which relies on the digital asset XRP as real-time bridge between the sending and receiving currencies to enable even faster and cheaper cross-border transactions.
In addition to enabling faster, cheaper payments, ODL eliminates the need for financial institutions to pre-fund accounts in destination currencies—freeing up capital and guaranteeing the most competitive FX rates available.
Since the commercialization of ODL, we have seen significant growth and customer interest with two dozen customers signed on to use the product. Some of the notable customers committed to using ODL include goLance, Viamericas and FlashFX.
Today, ODL is available in corridors including: USD-MXN, USD-PHP, AUD-USD and PHP, and from EUR-USD. Plans for additional corridors across APAC, EMEA and LATAM are in progress for 2020.
For the millions of remitters, speed and cost matters—time delay in payments can interfere with covering critical expenses like emergencies, tuition payments and unexpected bills. Ripple provides financial institutions who help these families with a faster, easier and more reliable way of sending money home.
If you’re interested in learning how RippleNet’s ODL can help better serve your customers, contact us.
Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.