In 2017, the inflows to Argentina amounted to $688 million. Over 50% of these funds came from Spain and the United States. The south-south remittance corridors such as Bolivia-Argentina, Brazil-Argentina, Chile-Argentina, and Paraguay-Argentina are also significant as far as money transfers are concerned.
As an Argentine living outside the country and looking for ways of sending money to your family, you need to consider the cost, speed and security of the different providers. There are several options available and expectedly, each one of them has its strengths and weaknesses.
This guide looks at the various money transfer channels available when sending to Argentina, the information you need and the various factors to bear in mind.
Sending money to Argentina is simple and easy. Follow these steps to get started.
There are multiple ways to easily send and receive money in Argentina but these will largely depend on the provider you decide to use. Below you will find everything you need to know about sending and receiving money.
There are different ways you can send money to Argentina. You can opt for bank-to-bank transfers, online money transfer services, or instore cash transfers.
From the country you are in, you can transfer money through the banking system to Argentina. Banks are still perceived as being secure and reliable even in the 21st century. However, for you to make this kind of transfer, you need to have a bank account and the recipient needs an account as well.
To initiate a bank wire transfer, you have to visit a local branch and fill in the recipient information. Some banks have branches or correspondent banks in Argentina that they leverage for their wire transfers.
Generally, wire transfers to Argentina cost about $40 per transfer. For this cost to make sense, you’ll have to transfer larger amounts of money. For the many senders to Argentina who on average transfer $200 to their families, such a cost is not practical. The exchange rate margins banks charge can also be high in the regions of 6%.
Online money transfer service providers such as TransferWise, Xoom, WorldFirst, WorldRemit and Azimo give you the benefit of speed, cost-effectiveness, and reliability. To send money, you need to sign up for an account by providing all your personal details including physical address and telephone contact.
Once the account has been verified, you can send money right from the comfort of your seat. There are several ways you can pay for your transfer.
Of the above payment methods, the credit/debit card option is the most preferred if you want speedy transfers. For the payout, you have the option of choosing cash pickup or direct-to-bank transfers. Cash pickups are the fastest. Bank transfers are subject to bank regulations and working hours which may delay your transfer.
Apart from money transfers, online money transfer providers also allow you to top up the recipient’s phone. Airtime recharges are available on prepaid mobile numbers on the following Argentina-based carriers: Movistar, Claro, Nextel, and Personal. The airtime recharge is instant.
Money transfers through the instore cash transfer platform require that the sender visits an agent in their host country. Money transfer operators like Western Union, MoneyGram, or Ria are among the big names in this niche.
Sending 1000 GBP through MoneyGram will cost you just 3.99 GBP. On Western Union, it costs you 19.90 GBP. You have the option of choosing cash pickup or bank transfer as a payout option. The main disadvantage of instore cash transfer is that you have to physically visit the store to transact. This can be inconveniencing especially if you are the type of sender looking to transfer money on the go.
It is worth mentioning that instore cash transfer providers such as Western Union and MoneyGram also have an internet-based cash transfer service which allows you to begin your transfer online and complete it instore.
When sending money to Argentina, you’ll have to provide the following information.
For online money transfers, most of this information is captured once when opening the account. Going forward, you don’t have to provide all of it to send money.
Once you make your transfer, the recipient gets notified that funds are on the way. There are two main options open to receiving money in Argentina
Bank Deposit- Over 50% of Argentines have a bank account thus making it simpler and safer to transfer money directly into their bank accounts. That being said, 1 in 3 low-income earners are financially excluded and may not have access to formal banking services.
Cash Pickup- Money transfer providers such as WorldRemit have partnered with More Money Transfer, a Uruguayan money transfer provider to offer cash pickup services in Argentina. MoneyGram has simplified the cash pickup process by allowing you to locate cash pickup locations near you through its website. In 2013, Western Union and Carrefour Argentina signed an agreement to use Carrefour’s retail locations as cash pickup points.
For you to receive your transfer in Argentina you’ve got to provide the following documentation and support information.
• Your national identity card or passport
• The transaction number -This code is automatically generated when the sender initiates the transfer. It could either be sent to you by the provider or the sender.
Depending on the provider you are picking the funds from, you may be asked to identify the sender and the reason for the transfer.
There are different reasons behind the many transfers into Argentina. Some are directed towards savings and investments, others for family upkeep and lots of other use cases. Below are some of the commonly cited reasons for funds sent to Argentina.
Argentines living in the diaspora often send money to support their families in meeting their basic needs back at home.
Argentina had a savings rate of 20.1% as of September 2019. Part of the savings is contributed by Argentines living and working in the diaspora. Money for savings is sent directly to bank accounts or savings products based in the country.
Argentina has vast investment opportunities thanks to its wealth of natural resources, skilled workforce and dynamic market reforms. Inflows into the country are targeted at investment opportunities in infrastructural projects, real estate and financial assets.
Argentines in countries such as the United States and Spain send part of their incomes back home. This trend is powered by the fact that many Argentines are in those countries for contractual work. When their contracts end, they come back home, moving their earnings with them.
Millions of tourists visit Argentina each year. Many of them take advantage of travel plans and packages that require advance payment to lock in early-bird discounts and other heavily discounted promotions.
Apart from the basic support that Argentines living abroad give their families, some of them send money home to keep their siblings in school.
The choice of sending money with a money transfer service is informed by the convenience, reliability and affordability of the transfer services. Below is a summary of the reasons you should try out money transfer services on your next transfer.
Before you send money to Argentina, it is important that you understand the governance framework guiding money remittances to Argentina. Some of the key areas to consider include:
Sending money anywhere else in the world is as easy as sending money to Argentina. If you’re looking to send money to another country, here is the list of the most popular destinations.
Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com