TransferWise, a software that makes it easy to transfer money internationally with a smartphone app, is coming to Argentina later this year. Once it does, however, it will only be possible for people in Argentina to receive money that was sent from another country. Users in the country will be able to to send and receive amounts between US$1 and US$1,000,000 starting in 2018.
Unlike Venmo, the American money transfer technology that only charges a fee for credit card transactions, TransferWise charges a fee for all transfers. Therefore, it is a bit impractical to use it to pay your buddies back every time one of you buys the other a beer at the bar. According to El Cronista, however, it is still between five and ten times cheaper than sending money through a bank or other similar transfer technologies.
TechCrunch breaks down how TransferWise’s transfer fees are determined.
One detail worth noting about the transfer fee is that it can be paid by either the sender or the receiver.
Taavet Hinrikus, the Estonian native founder of TransferWise, told Infobae that the idea for the money transfer service came to him while living in England. Trying to transfer money between his homeland and his current country, he kept noticing that the rates given by transfer services like PayPal and Western Union were lower than the official transfer rates that he found online. In TransferWise, he wanted to give people a way to send money between countries without losing a significant portion of it to fees.
Hinrikus’ brainchild is also a faster way to send money, compared to most banks or other transfer services, as TransferWise guarantees that transfers will be completed in under 24 hours.
If, for any reason, a user wants to transfer a quantity larger than US$1,000,000, he or she needs special authorization. I know, what a hassle for something you will definitely be doing a lot.
Valued at about US$1.1 billion, TransferWise estimates that with its lower transfer fees, it collectively saves its users an average of US$2 million every day. With the addition of Argentina to its network, it hopes to see both of these numbers grow.