Intermex abandons Ripple ODL payment solution in Mexico

Payment company International Money Express (Intermex) said it will not use the Ripple ODL solution on keyLatin American markets, but will consider it when working with new regions.

Intermex Announces Intent Last MonthBecome a member of the RippleNet payment network using the Ripple On-Demand Liquidity (ODL) solution. It allows you to make quick and transparent payments by converting Mexican pesos to XRP tokens in real time, and then exchanging them for US dollars. However, the other day, Intermex chairman and CEO Robert Lisy said that Ripple would not be an effective solution for Mexico.

He explained his position by the fact that Intermex has alreadyentered into agreements with key regional operators Bancoppel and Elektra. In addition, the company has developed a clear strategic plan for further cooperation with these services, so there is simply no need for Ripple ODL.

The financial director made a similar statement.Intermex Tony Lauro, adding that Ripple solutions can be better used not in Mexico, but in other payment directions. This means that the company does not refuse to cooperate 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 be testing the Ripple technology this year, but it is too early to announce the use of this technology, as Intermex is not sure of its “viability” without proper testing in practice.

In November, Ripple's decisionwas tested by MoneyGram for money transfers between Mexico and the United States, with 10% of transactions between these countries using XRP. MoneyGram management stated that they intend to use ODL in the future, however, it is worth noting that the startup Ripple spent about $30 million on the purchase of MoneyGram shares, and then planned to invest another $20 million to develop this service.

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