International Money Express, Inc. (Intermex), a leading omnichannel money remittance services company that recently partnered with Ripple Labs, has announced its acquisition of LAN Holdings, Corp. and I-Transfer Global Payments E.P., S.A.U. Through this acquisition, Intermex aims to provide outbound remittances from Spain, Italy, and Germany for the first time, while expanding its services in Canada. The acquisition cost $8.6 million and was subjected to customary price adjustment.
With the acquisition of LAN Holdings, Intermex has also acquired I-Transfer, a Spain-based money remitter that facilitates the transfer of money from Spain, Italy, and Germany. Bob Lisy, Chairman, CEO, and President of Intermex, disclosed that the acquisition would enable the company to expand its global footprint to over 60 countries from the current 28, in its pursuit of improved services, profitable growth, and great service to customers and partners.
Intermex operates as one of the largest remitter services globally, with 100,000 payer locations in 170 countries, processing over 30 million transactions per year. The company’s partnership with Ripple focuses on the Mexico-US corridor, as Mexico received $36 billion in remittance payments last year, which was the third largest in the world. With Ripple’s technical ability to instantly send transactions at a lower cost, Intermex is expected to leverage Ripple’s expertise to facilitate the partnership’s success.
Ripple’s vision aligns with that of the World Bank, which aims to reduce the costs of global remittance transactions from an average of 6.82 percent to below 3 percent by 2030. Ripple’s On-Demand Liquidity (ODL) product, used in some prominent corridors including the United States, Philippines, Australia, and Europe, facilitates cost-efficient and immediate settlement of transactions, enabling remittances to be sent quickly and securely across borders.
Intermex joins other remittance services, such as MoneyGram and goLance, in leveraging Ripple’s ODL product to facilitate faster, low-cost remittances. The industry has significantly evolved over the last 10 years, with new solutions such as ODL connecting financial institutions and providing more options, making movement of money easier and more efficient.
In conclusion, Intermex’s acquisition of LAN Holdings and I-Transfer Global Payments E.P., S.A.U., is a step towards expanding its services beyond the 28 countries it currently serves and entering the Spain, Italy, and Germany markets. Its partnership with Ripple will help the company leverage Ripple’s expertise to achieve its mission of great service to customers and partners with a continued focus on profitable growth for its shareholders. As the remittance industry continues to evolve, companies such as Intermex that adopt innovative technologies such as Ripple’s On-Demand Liquidity (ODL) product are better positioned to grow, expand and remain profitable in the market.