Ripple is breaking down walls for cross border payments to Mexico
Ripple recently announced its plans to partner with International Money Express Inc to strengthen cross border transactions between the US and Mexico. Ripple is one of many cryptocurrency companies attempting to improve the state of cross border payments around the world, and they seem to be the world leader in the industry. Let’s take a look at how Ripple is breaking down walls for cross border payments to Mexico. https://www.youtube.com/watch?v=fN0wfZnHDyE Some context Relations between the United States and Mexico are strained at the moment. The Trump administration’s treatment of Mexican migrants is largely to blame, but tensions have been mounting for years. Still, the need for a proper cross border payment channel is evident. With many Mexican citizens living in the States, there is a clear niche available for a company like Ripple to fill. The partnership Ripple revealed that its partnership with International Money Express (Intermex), will make global payments between the US and Mexico easier and more cost-effective. The partnership will ensure that cross border transaction demands in South America and the Carribean corridors were fulfilled. According to the Ripple blog: “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 remittance service providers between Mexico and the US. Alone, it processes more than 30 million transactions per year, with new users joining each day. Intermex runs its operations through a vast network of more than 100,000 payer locations. It claims that this partnership with Ripple will allow it to streamline its settling process, using the company’s On-Demand Liquidity (ODL) index. Embedded https://twitter.com/lukeeboy/status/1228006368843464704 ODL Ripple is breaking down walls for cross border payments to Mexico, through its partnership with Intermex and its ODL technology. Using ODL, Intermex can eliminate the need for financial institutions to pre-fund accounts in the destination’s currencies. So, these organizations can release more capital and ensure better exchange rates. Ripple acknowledge a major uptake in the industry following the launch of ODL - although it’s unclear when they’ll release a fully ODL-integrated product. Intermex is now the second company after Moneygram to partner with Ripple to improve cross border transactions. Alex Holmes, MoneyGram’s CEO, revealed that more than 10% of US-Mexico remittance payments were done using ODL. Ripple is currently the third largest cryptocurrency by market cap, and its performance in the cross border transactions industry shouldn’t go unnoticed. Trade Ripple (XRP) on eToro, the world’s largest social trading platform. Embedded https://www.youtube.com/watch?v=Ket7OgJXrZY&t=80s Ripple is a major player in the remittance market Ripple is breaking down walls for cross border payments to Mexico, and the rest of the world. Ripple has already partnered with some of the biggest financial institutions, and it’s slowly but surely infiltrating the remittance market. It’s pretty incredible what Ripple has to offer the financial industry, and it’s clear that major players are taking notice. Ripple could effectively revolutionise cross border payments all over the world, bringing fast, safe, and cost effective payment solutions to the globe.