Ripple has taken another major step while aiming to promote low-cost remittances around the world. Lately, the blockchain firm made an announcement that several financial services companies have started partnering with International Money Express, Inc. referred to as Intermex. Intermex is a significant remittance services firm which has focused on payments across Caribbean global corridors and Latin America.
The alliance would allow Intermex to employ On-Demand Liquidity (ODL) via RippleNet so that it could accelerate payments between Mexico and the United States of America. At the moment, ODL has been using XRP to connect the transactions between the sender and receiver, while moderating the requirement for a pre-funding account in cross-border payments.
A report declared that RippleNet, along with Intermex, would directly involve itself in processing more than 30 million payments throughout the year. The system would consist of a network having more than 100,000 payer locations. Mexico is the country that has gained the third position in terms of remittance recipients. The country has gathered more than 36 billion dollars through remittance in 2019. The report added that with this partnership, Intermex would enable itself to settle major currencies and match the funding time with its settlement demands decreasing costs and offering transparency to their clients.
Earlier, some reports stated the competition to promote cross-border payments in Latin America has ignited over the past year as PayPal invested $750 million in MercadoLibre in March 2019.
Towards the last year's end, PayPal made an announcement that it had signed a commercial partnership with MercadoLibre to provide innovative financial solutions that would help underserved people through the traditional financial system. The declaration triggered the stock value of PayPal and pushed it to grow over by 2.5% over 24 hours.
Even after the ODL's commercialization, Ripple has been making its own moves. The company has been doing notable partnerships with significant companies such as goLance, MoneyGram and FlashFX. All these companies have been utilizing ODL for payments.