How to send money from Australia to Colombia

When you're starting your life in an expensive country like Australia, it can be hard at first to figure out how to cover your expenses and manage your money. But eventually, you realize it’s possible to earn good money if you're disciplined—and you'll probably even have some left over to send back to Colombia.

This guide explains the best way to choose the right money transfer service for you: what factors to consider, how to understand fees and exchange rate margins, and how to maximize the amount of Colombian pesos that arrive in your account or are sent to someone else.

Factors to Consider When Choosing a Transfer Service

Although all services may seem similar at first glance, there are significant differences that can impact how much money actually arrives in the destination country.

1. Fees

This is often the first thing people look at, but it can be misleading. Some providers offer “zero-fee transfers” but make money by using a less favorable exchange rate (this is known as the margin or spread).

For small amounts, it's best to look for low or zero fees. But if you're sending a larger sum, you should pay more attention to the exchange rate.

Many companies that advertise “no fees” or very low costs often profit by applying a worse exchange rate (known as the margin or spread).

If you're sending a small amount, those low fees can save you more than getting a better exchange rate. But for large amounts, the fee becomes less relevant and the exchange rate becomes the most important factor.

2. Exchange Rate (or Spread)

In the world of money transfers, the spread is the difference between the official exchange rate (also called the mid-market rate) and the rate the provider gives you. The lower the spread, the more pesos you'll get for your dollars!

3. Payment Method

The way you pay affects how much actually arrives in Colombia.

• Paying with PayID or a bank transfer from your Australian bank is usually free.

• Using a debit or credit card, however, incurs a fee—anywhere from 0.5% to 3% of the amount you're sending.

The best method is usually PayID or a bank transfer because there's no cost involved. But if you’re in an emergency, a card can be used—it will just cost a bit more.

4. GMF Tax (4x1000)

The GMF (known as the 4x1000 tax) is a government tax on international transfers, usually collected by the receiving bank in Colombia.

So, when sending money, it’s ideal to find the best balance between fees, margin, and funding costs. As we said earlier, providers offering zero-fee transfers often use unfavorable exchange rates, while those with better rates might charge higher fees—though this isn’t always the case.

General rule:

• For small transfers, look for zero-fee services.

• For larger amounts, prioritize the best exchange rate.

Other Factors That Affect Your Experience

These may not directly affect how much money reaches Colombia, but they’re key to making sure the service suits your needs:

Transfer Speed

A very important factor. If you need the money to arrive quickly, speed might matter more than getting the best rate. Some providers offer near-instant transfers, while others may take 4–5 days.

Receiving Bank in Colombia

As you may know, Colombia’s banking system is not evenly balanced. Bancolombia dominates the market, and many providers only support transfers to this bank. Davivienda and BBVA follow in availability. If your recipient’s account is with a smaller bank, your options will be more limited.

Minimum/Maximum Amounts

Services vary in their transfer limits, especially regarding the maximum amount allowed. If you plan to send a large amount, check this before registering to avoid splitting it into several smaller transfers.

Cash Pickup Availability

While not common, sometimes a family member may need to pick up the money in person instead of receiving it in their bank account. In such cases, your options shrink considerably and you may have to accept a less favorable exchange rate.

Does the Provider Have an App?

Not essential, but if you send money frequently, having a mobile app can make the process much easier. Some services only offer a web interface, though most now have mobile apps.

Before You Send Money (Very Important!)

Before sending money to Colombia, make sure the recipient’s bank account is enabled to receive international transfers. Each bank has its own process, and if it hasn't been pre-registered, the transfer could fail.

For example, to send money to a Bancolombia account, the recipient must activate the Automatic Deposit service to receive the money directly. Bancolombia has specific instructions on how to activate this.

Once you’re registered with one of the recommended services, it’s best to do a small test transfer first to ensure everything is set up correctly. After that, the details will be saved for future transfers.

Our Recommended Transfer Services

Wise: Best for fast transfers

Wise (formerly TransferWise) has long been a great option for international transfers, though its service to Colombia isn’t as competitive as in other countries.

While their exchange rate is excellent, their fees are a bit higher than most on this list.

Still, there’s a big reason to have a Wise account: they offer instant transfers.

Personal experience: Once, I urgently needed to pay for something in Colombia—specifically, drinks for my wedding—and I needed the money in my Bancolombia account right away. I made the transfer from my phone using Wise, and the money arrived within seconds.

Even if you usually use another service, I recommend creating a Wise account—at least as a backup for emergencies.

Pros:

• Instant transfers

• Best exchange rates

• Very user-friendly app

Cons:

• Higher fees (though still competitive overall)

• Only works with Bancolombia—no support for other Colombian banks

• Relatively low transfer limit (but you can send multiple transactions)

Conclusion: Ideal if you prioritize speed and fair rates; not suitable if you need physical cash pickup.

Remitly: Best for Bank and Mobile Wallet Coverage

Pros:

• Excellent coverage for banks and mobile apps

• Cash pickup available

Cons:

• Flat fees can be high for small transfers

Conclusion: A versatile option—allows sending money via various channels: cash pickup, bank deposit, and mobile wallets. Great if time and flexibility are important, or if you're sending to Nequi, Daviplata, or for physical cash pickup.

Western Union: Best for Cash Pickup

Pros:

• Ideal if the recipient doesn’t have a bank account

• Large agent network in Colombia

Cons:

• Exchange rates and fees aren’t always competitive

Conclusion: Very convenient for instant cash, though rates may be less favorable.

Instarem

A good option for transfers to Colombia. They support a wide variety of banks and offer exchange rates very close to the real market rate. Fees vary based on the amount sent.

Pros:

• Excellent exchange rate

• Wide variety of supported banks in Colombia

• Reasonable fees

• Loyalty points program to reduce fees with frequent use

Cons:

• Not the fastest transfers (though next-day delivery isn’t bad)

• No option for cash pickup

What About WorldRemit?

Until recently, WorldRemit was a good option for small transfers. Although their exchange rate wasn’t the best, they didn’t charge fees and had a very user-friendly app. However, as of April 23, 2024, they decided to remove bank transfers to Colombia.

Other Options to Consider

• Xe

• MoneyGram

• Send

• TapTap Send (a newer option)

These are also safe and reliable, but we found them less competitive in terms of fees, rates, or usability.

In Summary

Each service has advantages depending on your situation: urgency, amount, destination bank, and whether cash pickup is needed.

We recommend doing a small test transfer first and always having at least one backup option just in case.