Ripple announced its partnership with International Money Express (Intermex) on February 4, 2020. According to Ripple's announcement, Intermex processes more than 30 million transactions annually and is therefore among the largest cross-border payment providers in the US. .UU. to Mexico.
Through the partnership, Intermex would use RippleNet to drive nearly instantaneous and transparent international payments for its clients. In a recent earnings call, Tony Lauro, Chief Financial Officer at Intermex, noted that the company will begin testing Ripple's XRP for its remittance services later this year.
Intermex will begin testing the potential of XRP as a bridge currency in 2020
A number of high-profile companies like MoneyGram have embraced Ripple's Liquidity on Demand (ODL), which uses the XRP cryptocurrency as a bridge currency to enable low-cost, real-time international payments.
In fact, MoneyGram revealed late last year that it processes 10% of its transactions between the United States and Mexico through ODL. Furthermore, since it adopted Ripple's ODL in the second quarter of 2019, MoneyGram has witnessed significant growth in its revenue.
As mentioned above, Ripple's association with International Money Express (Intermex) meant that the latter used RippleNet for its remittance services. CFO Tony Lauro said the company is looking for other Ripple products such as the On-Demand Liquidity (ODL) service that they will begin testing later this year:
"The other would be liquidity on demand, I think it could be more than what you are talking about, where we can use XRP as a kind of pivot currency to exchange US dollars for pesos, 24/7. And it's early, but we'd hope to try it later this year"
“And to the extent that it is feasible, either from a rate perspective or a capital efficiency perspective, we will expand it. But it is too early to say how much we intend to do. "
Intermex will not use Ripple technology in its "main markets"
It should be noted that Intermex focuses mainly on Latin America and the Caribbean. And while the company intends to start testing Ripple's ODL, CEO Robert Lisy clarified that they do not intend to use any of Ripple's payment solutions in their core markets.
Lisy specifically postulated that "Ripple will not be an answer for places like Mexico" because they are "Very proud of the relationships we have there" . He further explained:
“We have very close relationships that are strategically setting plans and goals with those payers. And therefore it really won't see us taking advantage of Ripple in our core markets. ”
In other words, Intermex will not use Ripple's technology in its core markets, where it has already established strong relationships. Instead, it will take advantage of Ripple in the newer markets in the areas where they are looking "Auxiliary products".