The International Money Express (Intermex) payment company said it will not use the Ripple ODL solution in key Latin American markets, but will consider it when working with new regions.
Last month Intermex announced its intention to become a member of the payment network RippleNet, using the solution Ripple On-Demand Liquidity (ODL). It enables fast and transparent payments by converting Mexican pesos into XRP tokens in real time and then exchanging them for US dollars. However, Intermex chairman and CEO Robert Lisy said the other day that Ripple would not be an effective solution for Mexico.
He explained his position by the fact that Intermex has already signed agreements with key regional operators Bancoppel and Elektra. In addition, the company has a clear strategic plan for further cooperation with these services, so Ripple ODL is simply not needed.
Intermex CFO Tony Lauro made the same statement, adding that Ripple's solutions can be better used in other payment directions, not in Mexico. This means that the company is not abandoning its cooperation with Ripple, but plans to use ODL in new and emerging payment markets, where it intends to build and develop its activities. Lauro added that Intermex will test the Ripple technology this year, but it is too early to announce the use of the technology because Intermex is not sure of its "viability" without proper testing in practice.
In November, Ripple's solution was tested by the MoneyGram service for money transfers between Mexico and the U.S., with 10% of transactions between these countries using XRP. MoneyGram management stated that they intend to use ODL in the future, but it should be noted that startup Ripple spent about $30 million to buy MoneyGram shares and then was going to invest another $20 million to develop this service.
Comments
Post a Comment