Sending global payments should be easy and inexpensive. However, the underlying systems are complex and fragmented, resulting in high international 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, inexpensive payments is required.
In an important step in changing that status quo, Ripple is pleased to share a new partnership with International Money Express, Inc. (Intermex) (NASDAQ: IMXI) – a leading money transfer company primarily focused on the corridor in Latin America and the Caribbean focused. The partnership enables Intermex to leverage RippleNet for faster, more transparent cross-border remittance services between the United States and Mexico.
More referrers than ever are using this corridor to send money home to loved ones. According to the World Bank, Mexico is the third highest country with remittance recipients. In 2019, remittances totaled $ 36 billion. The US tops the list of countries with the highest inbound influx into this region.
Intermex is one of the world’s largest remitter service providers from the USA to Mexico and processes more than 30 million payment transactions annually via a network of 100,000 paying locations. Through this partnership, Intermex will be able to settle major currencies and adjust the timing of funding to meet settlement requirements in order to reduce costs and provide transparency to its customers.
Other financial institutions are also working with Ripple to provide global payment solutions for this important remittance corridor – and for tangible results. One option for our customers is to use RippleNet’s on-demand liquidity service, which relies on the XRP for digital assets as a real-time bridge between the sending and receiving currencies to enable even faster and cheaper cross-border transactions.
Not only does ODL enable faster and cheaper payments, it also eliminates the need for financial institutions to pre-finance accounts in target currencies. This will free up capital and guarantee the most competitive exchange rates available.
Since ODL was commercialized, we’ve seen significant growth and customer interest with two dozen customers signed up to use the product. Some of the notable customers who are committed to using ODL are goLance, Viamericas, and FlashFX.
Today ODL is available in the following corridors: USD-MXN, USD-PHP, AUD-USD and PHP as well as from EUR-USD. Plans for additional corridors in APAC, EMEA and LATAM are in the works for 2020.
For the millions of referrers, speed and cost are important – delays in payments can affect the coverage of critical expenses such as emergencies, tuition fees and unexpected bills. Ripple provides financial institutions helping these families with a faster, easier, and more reliable way to send money home.
If you’d like to learn how RippleNet’s ODL can help serve your customers better, contact us.