Money & Payments in Panama City

Official Local

Panamanian Balboa (PAB)

Note

Pegged 1:1 to USD; USD is legal tender for all paper transactions. Balboa exists only in coins.

Strategy

Withdraw maximum allowed per transaction to minimize fee per dollar. Consider accounts like Charles Schwab or Revolut that rebate ATM fees.

Availability

Plentiful in city center, malls, banks, and airport. Banks: Banco General, Banistmo, BAC Credomatic; look for 'Sistema Clave' signs.

General Note

By law, tipping is always voluntary in Panama; no business can require it or add automatically without approval.

Amex

Limited acceptance; hotels and upscale restaurants only. Have Visa/Mastercard as backup.

Online Shopping

Visa, Mastercard, PayPal widely accepted for e-commerce.

Visa Mastercard

Widely accepted in Panama City at restaurants, hotels, supermarkets, shopping malls, and most businesses; contactless payments common.

Coverage By Area

Excellent in urban center, Casco Viejo, Costa del Este, banking district. Less reliable outside city; rural areas and informal vendors are cash-only.

Cash Required For

• Local buses (Diablos Rojos): USD $0.25
• Small fondas (local eateries): USD $3–$6 lunches
• Casco Viejo street vendors and pop-up stalls
• Some market stalls (Mercado de Mariscos)
• Unmetered yellow taxis (negotiate fare first)
• San Blas Islands (entirely cash-based)
• Colectivos to nearby towns
• Hotel/housekeeping tips
• Some informal shops and independent vendors

Note

Even though Panama uses USD, you may still face foreign transaction fees (2–3%) from your home bank if card is issued abroad. Check card terms before travel.

Setup Process

Non-resident foreigners can open accounts but face stricter requirements than residents. In-person application is typically required, though some banks allow remote opening via local attorney.

Online Banking

Available at major banks for account management and transfers

Operation Hours

Most banks open Monday–Friday 8:30 am–3 pm, Saturday 8:30 am–noon or 1 pm

Minimum Deposit Resident

PAB 500

Range typically $500–$5,000 depending on bank

Minimum Deposit Non Resident

PAB 250,000

Non-resident deposits may be significantly higher; source ranges vary from $10,000–$250,000 depending on bank and profile

Account Opening Timeline Resident

Few days to two weeks with complete documentation

Account Opening Timeline Non Resident

Two to three weeks or longer

US Citizen Note

U.S. citizens must comply with FATCA; banks will require IRS forms (W-9 or equivalent). Not all banks accept U.S. citizens.