International Money Express (Intermex), a Nasdaq-listed remittance company, revealed that it would not use Ripple’s services for its “core” markets despite the partnership between the two.
The company cleared its position on using blockchain technology in its latest earnings call.
“We have very tight relationships that [are] strategically setting plans and objectives with those payers. And so you won’t really see us leveraging Ripple in our core markets,” Robert Lisy, President and Chief Executive at Intermex, stated.
Ripple announced its partnership with the Florida-based company last month and specified that its blockchain-based solutions would be used for the remittance corridor between the United States and Mexico.
“Intermex is one of the largest U.S. to Mexico remitter service providers in the world—processing more than 30 million payment transactions a year through a network of 100,000 payer locations,” Ripple stated then. “Through this partnership, Intermex will be able to settle key currencies and match the timing of funding with its settlement requirements reducing costs and providing transparency to their customers.”
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Not to experiment in the key markets
Lisy, however, clarified that the remittance company has no intention to experiment with its primary markets.
“Ripple will not be an answer for places like Mexico. We’re very proud about the relationships we have there,” Lisy added.
With Ripple’s partnership, Intermex can use the blockchain company’s on-demand liquidity (ODL) solution, which uses XRP for fund transfer. The trial to use the new technology by the company is due late this year.
“I think it will bring us more growth in newer markets in places where we’re exploring going into ancillary products, but probably not in our core business because those are really critical where we differentiate ourselves from others because of the kind of volume we drive and the relationships we’ve built over the years with direct relationships,” Lisy stated.