US-to-Paraguay Remittance: How to Send Money Overseas And Issues To Be Aware Of

Table of contents:

• Why Do People Send Money Overseas to Paraguay?
• 4 Issues You May Face When Sending Money to Paraguay
• How to Transfer Money to Paraguay
• IPSIPayⓇ: Your #1 Selection to Send Money to Paraguay

The US immigrants from Paraguay are the most familiar with the process and issues of the US to Paraguay remittances. These immigrants are among the group most regularly and frequently sending money home to help their families there. 

Since official banking services may be unavailable or too expensive, senders and recipients look for alternatives. They hope to find the best remittance rates and fees to save money their loved ones need so much. International remittances are also necessary to do business, pay bills at home, and manage other everyday transactions.

Need to make a simple, safe, and secure money transfer to Paraguay from the US? We know how. This article should help you choose a low-cost and fast way to send money to Paraguay. You will also discover the possible challenges to avoid them.

Why Do People Send Money Overseas to Paraguay?

Despite the outstanding economic growth over the last decade, the national average poverty level in Paraguay is still around 24%, with almost 35% in rural areas. Quite naturally, it drives foreign-employed individuals to transfer money to Paraguay consistently.

Where Do Most of the Remittances Come From?

In contrast to Mexico, which receives remittances mainly from the United States, Paraguay’s cash inflow sources are rather diverse. Apart from the US, there are large communities of Paragvayans in Argentina (about 1 million people), Brazil, and Spain.

It affects senders’ preferences. Firstly, they look for international money transfer companies that operate worldwide. And secondly – they appreciate remittance providers with low service fees regardless of the transfer direction.

Why Do People Send Money to Paraguay?

The employment-based immigrants might want to support their relatives with remittances for a number of reasons. It could be a regular or a one-time transfer, depending on the purpose. Here are the most common cases:

To Lend Money Until Payday

Some people, especially the unbanked, might apply for payday loans in case of money troubles. But it’s unfavorable as it adds extra debt to the ones you already have. So it’s better to ask someone close to you to send money. It’s safer, it can be done online, and you can repay the amount you owe without high fees.

To Send Funds for Costly Purchases

Unlike buying a car, you can’t cover the cost of relocation or a wedding by taking a loan. Moreover, many local vendors require customers to pay in cash. On such occasions, it would be easier to ask for a transfer and take money from the nearest cash pickup location.

To Help with Bills

Your family members may forget to reload their credit cards or pay for utilities. Luckily, there are multiple ways to send money to Paraguay almost instantly and pay bills on time.

To Deposit Funds in a Bank Account

Getting a bank deposit on a savings account with a high annual interest rate is a great idea. It will give your family members a reliable financial cushion. For instance, you can send money internationally directly to a person’s retirement savings account or a sweep account.

On top of that, a sender can pay by bank transfer for home rent or utilities. That’s convenient if you live outside Paraguay as an expat or leave for a vacation abroad.

4 Issues You May Face When Sending Money to Paraguay

Senders and recipients mostly suffer from underdeveloped banking infrastructure. However, those challenges are manageable since you can send money overseas using alternative banking services. But we strongly recommend comparing their exchange rates, processing speed, and transfer fees before the transaction.

Here are consumers’ four most common troubles when sending money in cash and digitally. Forewarned is forearmed.

1. Receiving a Transfer in a Rural Area

Your payee will easily receive money in Paraguay’s urban regions. The recipient can visit a check cashing service that accepts money orders or get to the nearest Western Union agent location.

However, when you remit money to a rural area, cash withdrawal might be a problem. Firstly, there might be no agent location nearby. Secondly, local cash-checking services may charge too much. In such a case, we advise you to opt for a P2P transfer or direct card-to-card transfer. These will save you time and money.

2. Low Transfer Limits

Despite the popularity of cash-to-cash transfers, their limits are low. Recipients can get only up to $6,000 (or an equal amount of PYG) at WU locations at once.

Conversely, most online remittance providers set a limit of $10,000 per single transaction/per month. But the service can extend your transaction limit if you pass an additional KYC check. For instance, IPSIPay’s money transfer service allows you to upload and offload up to $20,000 on your mobile account balance and associated Visa debit card.

3. Excessive Currency Exchange Markup

When banks process a multi-currency international transfer, they make money not only from transfer fees. They set their own markup above the mid-market exchange rate. The average margin is around 1.5%, but it might sometimes reach 5%-7% or even higher.

Therefore, if you make a USD-to-PYG transfer to Paraguay, we recommend using mobile money-sending apps. Their currency exchange markup is typically around 0.4%-0.7%. It’s way less than offline money transfer companies and banks.

4. Many Locals Don’t Have Bank Accounts

Despite the last decade’s positive trend, many Paraguayans remain unbanked. Recent statistics reveal that only half of the adult population owns a bank account.

Consider this while planning a money transfer. If you know for sure that bank wire is not an option, try the following:

• P2P payments
• Cash-to-cash transfers
• Sending funds to a debit card
• Mailing the money order internationally.

Remember that service fees and conditions may vary even for the same way of transfer. So it’s better to compare rates and terms from at least five remittance providers in advance.

How to Transfer Money to Paraguay

At IPSIPayⓇ, we care about your time and convenience. That’s why we suggest you check video tutorials on several remittance options you can carry out using an IPSIPay app.

Sending Money Wallet-to-Wallet

The international peer-to-peer transfer takes less than a minute. You only need to:

1. Enter the amount you want to send.
2. Specify your payee by phone number.
3. Enter your security PIN and confirm the payment.

IPSIPayⓇ charges $0 for P2P transfers and balance withdrawals to virtual and physical IPSIPay Visa cards.

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Sending Money Internationally to a Bank Account

IPSIPay’s wire transfers are powered by MCN and Sigue payment processing services. To send funds, do the following:

1. Choose between MCN or Sigue.
2. Choose the payment network considering their exchange rate and transfer fee.
3. File in the transfer details:

• Recipient’s legal name
• Their billing address and phone number
• Their SWIFT/IBAN/BIC code.

1. Verify the exchange rate, taxes, and service fees before confirming the payment.
2. All Done! Expect the money to arrive in 2-3 business days.

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IPSIPayⓇ: Your #1 Selection to Send Money to Paraguay

The IPSIPay app is designed to provide you with hassle-free personal finance management. Apart from secure and affordable cross-border remittances, you can benefit from a variety of financial services. Those are available on your mobile device 24/7, and you can access them in 200+ countries.

So go for it – download the app to your Android or iOS device for FREE!