Some cryptocurrency companies have taken it upon themselves to improve the state of cross border transactions across the world to create a stronger financial ecosystem. One such company has been Ripple, the parent of the third-largest cryptocurrency on the charts.
Ripple recently announced its latest partnership with Internataional Money Express Inc to strengthen the cross border payment infrastructure between the United States and Mexico.
Ripple revealed that this partnership was taken to make global payments easy and cost-effective without the hassle of the current financial structure. The Intermex-Ripple partnership will ensure that the cross borer transaction demands in the Latin American and Carribean corridors were taken care of.
According to the latest blog by Ripple:
“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 considered as pone of the biggest remitter service providers between the United States and Mexico. The organization processes more than 30 million payment transactions a year with new customers being added every single day. Intermex runs its operations through a network of 100,000 payer locations. Intermex claimed that it will be able to streamline its settling process using Ripple‘s On-Demand Liquidity [ODL] index.
Using ODL technology, Intermex will be able to eliminate the need for financial institutions to pre-fund accounts in destination currencies. This allows such organizations to release more capital for better exchange rates. Ripple admitted that post the launch of the ODL, there has been a massive uptake in the industry. It is not yet clear when the company will officially release the ODL integrated product.
Intermex is the second company after MoneyGram that Ripple has partnered with to improve the cross border department. MoneyGram CEO Alex Holmes had also revealed that over 10 percent of US-Mexico remittance on MoneyGram was done on the ODL.