- One of Ripple's more recent remittance partners, Intermex, recently stated that it doesn't plan to use Ripple's solutions for its 'core' markets, such as Mexico.
- The company's CEO revealed that Ripple solutions will be utilized in newer markets, but the core markets are where the firm wants to stay true to what makes it different.
- The company has yet to test Ripple's technology, which it plans to do later this year, and move on from there, according to results.
Remittance company International Money Express (Intermex) recently partnered with a crypto startup Ripple, the firm behind the world’s third-largest cryptocurrency, XRP. However, despite this partnership, Intermex revealed that it has no plans to use Ripple’s technology for its “core” markets, listing Mexico as one of them.
The company’s president and CEO, Robert Lisy, said as much in the last earnings call, noting that Ripple and its solutions will not be the answer for places like Mexico. He added that Intermex already created relationships with some of the biggest players in this region, such as Elektra or Bancoppel. With them already in place, he revealed that Ripple will not be leveraged in such markets.
Ripple solutions will be used in newer markets
A similar statement came from the company’s CFO, Tony Lauro. Lauro noted that Ripple technology might have more applicability for Intermex in other markets, outside of Mexico, where the company is building its network into other corridors.
However, these statements are in contradiction with Ripple’s own announcement, back when the partnership was announced. Back then, the crypto startup said that Intermex will use RippleNet to deliver faster and more transparent international remittance services between the US and Mexico. Now, it appears that this will not be the case. Instead, the company will use Ripple’s technology in newer markets, as Lizy pointed out.
He believes that using Ripple in the newer markets would bring more growth to the firm, especially in places where Intermex is exploring going into ancillary products. Core business, on the other hand, is critical for the company, because that is where the firm differentiates itself from others.
Intermex originally partnered with Ripple for its ODL solution, which uses Ripple’s XRP to settle international transactions instantly, and at a low cost. However, Intermex has yet to test this solution, which it plans to do later in 2020.
Also, since it did not test the solution as of yet, it has no way of knowing to what extent will Ripple’s technology be viable, either from a capital efficiency or rate perspective. Lizy noted that the firm will expand it if it turns out that it is viable, although it is still too early to say anything other than that right now.