Ripple To Take Over Remittance Corridor Between The US and Mexico
Ripple was in the spotlight not too long ago, when it revealed the main secret to profit.
Long story, short, Ripple CEO Brad Garlinghouse said that the San Francisco payments company would not be profitable without the sales of XRP.
During a recent interview with the Financial Times, Garlinghouse confirmed that XRP sales are necessary for the company’s profit.
Bitso and Ripple partnership
Mexican crypto exchange Bitso is now processing 2.5% of remittance transactions from the US to Mexico, according to the latest reports.
Bitso head of finance Bárbara González Briseño attributes this to the company’s partnership with Ripple.
In a video posted on Ripple’s YouTube channel, Briseño explained the way in which Bitso is changing the way people send and receive money using Ripple’s liquidity solution for cross-border payments.
“It’s this solution that we’re offering to all of our customers, partnering with Ripple and trying to take over the remittance corridor from the US to Mexico.”
As you probably know by now, Ripple’s ODL solution for remittances uses XRP.
How the cross-border payment powered by Bitso works
A cross-border payment that’s powered by Bitso converts dollars from the US into XRP, and then it converts XRP to Mexican peso for the recipient in Mexico.
“Instead of going through a wire transfer and going to the bank and calling someone to help me fix all the different details and waiting for five days, I can use ODL where the dollars turn into XRP, and the XRP are sent into Bitso, and they’re immediately exchanged for Mexican pesos,” according to official notes.
More than that, “In the span of less than a minute, I have my money in the Treasury and at a rate that was more beneficial for me and a cost-effective transaction.”
Briseño made sure to highlight the fact that Ripple’s solution, called ODL changes cross-border payments in Mexico.
Here, a lot of people are still unbanked, and remittances are really slow and costly.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.