Bitso believes it’s a valuable solution for corporate customers as it transforms the way businesses manage their working capital
Ripple and Bitso announced the delivery of instant cross-border payments for Mexican businesses and retail customers. The companies began working since 2018 to build and pilot a solution for slow and expensive cross-border transfer from the US to Mexico.
Thanks to RippleNet’s On-Demand Liquidity (ODL) service, the company can convert US dollars into the digital asset XRP. Afterward, it sends the XRP via Bitso’s banking partners where it is exchanged for Mexican pesos, less than in a minute.
For comparison, a typical wire transfer costs more than five times what Bitso’s partners now pay while exchanging via RippleNet’s ODL.
Bitso estimates that the remittances market between the US and Mexico is worth $35 billion per year. In 2019, the company plans to increase its share in the market by 10 times in 2020, compared to 1.5% it gained a year ago.