In this article, you'll discover whether PayPal works in Panama, explore some potential drawbacks if it is available, and consider various possibilities for its use. Stay tuned to find out more.
Does Paypal Work In Panama?
PayPal is available in Panama, allowing users to withdraw and receive funds in real time. To use PayPal in Panama, users need to create a Kipo account and link it with their PayPal account. This setup enables fund transfers up to $5000 monthly for individuals and up to $10,000 monthly for businesses.
Funds can be transferred to a MetroBank account in real time or within two business days if the account is with another local bank. There are daily and monthly withdrawal limits, with additional documentation required for higher amounts. Fees include a $7 commission per transaction, 0.65% of the transaction amount, and ITBMS on the commission.
Fees and Charges for Using PayPal in Panama
Here are some general costs that users might encounter when using PayPal in Panama:
- Transaction Fees: PayPal charges a commission per transaction of $7 USD plus 0.65% of the transaction amount.
- ITBMS on Commission: An additional 7% ITBMS (Impuesto de Transferencia de Bienes Muebles y Servicios) is applied on the commission only.
- Currency Conversion Fees: PayPal may charge a fee for converting currencies during transactions.
- Withdrawal Fees: Fees for withdrawing funds to a local bank account may apply, including the standard commission and ITBMS.
Is PayPal the Best Option in Panama?
Even though PayPal is available in Panama, it might not be the best option for users due to certain limitations and restrictions that could affect its usability and convenience.
- Daily and Monthly Limits: Natural persons can withdraw up to $750 per day and $5000 per month.
- Additional Documentation: Required for withdrawals above the set limits, adding extra steps.
- Transaction Fees: High fees, including a $7 commission and 0.65% of the transaction amount.
- ITBMS Charges: An additional 7% ITBMS is applied on the commission, increasing costs.
- Transfer Delays: Funds to non-MetroBank accounts may take up to two business days.
Alternatives to PayPal in Panama
1) OneSafe
OneSafe is a leading alternative payment solution in Panama, offering a seamless and user-friendly experience. With lower fees, efficient onboarding, and robust customer support, OneSafe stands out. Key features include multi-currency support, global payments, and corporate cards, making it a superior choice for businesses.
OneSafe Reviews
Users have praised OneSafe for its comprehensive banking services, including ACH, Crypto, Wire deposits, and Virtual cards. Many appreciate the platform's support for most businesses, highlighting its user-friendly experience and efficient customer service. OneSafe has been recognized for its seamless and robust financial solutions, making it a preferred choice for many users.
2) Wise
Wise offers a multi-currency account, low fees, and fast transfers, making it a viable alternative payment solution in Panama. Users can hold and convert money in multiple currencies, receive global payments, and use a Wise debit card for international transactions without foreign transaction fees. Its strong security measures and high customer satisfaction further enhance its appeal.
Wise Reviews
Wise has an overall rating of 4.7 out of 5 based on 87 reviews. Users have reported issues with government restrictions, money transfers being returned without notification, and challenging document approval processes. Check out more Wise reviews here.
3) Google Pay
Google Pay offers a convenient alternative payment solution in Panama, allowing users to make secure transactions with their mobile devices. Key features include contactless payments, integration with various bank accounts, and robust security measures. Its ease of use and widespread acceptance make it a practical choice for everyday transactions.
Google Pay Reviews
Google Pay has a rating of 4.6 out of 5 based on 211 reviews. Users have reported issues with payments getting stuck, connectivity problems, and delays in customer support. Check out more Google Pay reviews here.
Frequently Asked Questions about PayPal in Panama
Can I use PayPal to receive international payments in Panama?
Yes, you can receive international payments in Panama through PayPal, subject to applicable fees and limits.
What are the withdrawal limits for PayPal in Panama?
Individuals can withdraw up to $750 daily and $5000 monthly. Businesses have higher limits.
Are there any additional fees for currency conversion?
Yes, PayPal charges a fee for converting currencies during transactions, which varies by currency.
How long does it take to transfer funds to a local bank?
Transfers to MetroBank accounts are instant, while other local banks may take up to two business days.
Is additional documentation required for higher withdrawal amounts?
Yes, additional documentation is needed for withdrawals exceeding the set daily and monthly limits.
Begin Your Journey with OneSafe Today!
Choosing the right payment solution in Panama is crucial for seamless transactions and cost efficiency. While PayPal offers some benefits, alternatives like OneSafe provide lower fees and better features. Explore OneSafe for a superior financial experience. Sign up today!
