Send money from USA to Panama
See today's live rates — and exactly what your recipient receives, after every fee.
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Today's best rates to Panama
As of 24 August 2026, sending £1,000 to Panama, your recipient gets the most with Instarem: 1,000.00 USD, the best of 3 providers compared.
| Provider | Rate | Fee | Recipient gets | Speed | |
|---|---|---|---|---|---|
1.0000 mid-market | £0 | 1,000.00 USD | Within 2 days | Send | |
1.0000 mid-market | £0 | 1,000.00 USD | 1–2 days | Send | |
1.0000 mid-market | £9.03 | 990.97 USD | Within 2 days | Send |
When you send money home to Panama, the cheapest route is almost always a specialist money-transfer app or company rather than your bank. The cost that matters most is hidden in the exchange rate: a bank typically keeps 2% to 5% in the rate, on top of any fee — so always judge a provider by the amount that actually arrives, not by a "no fee" claim. Below is exactly how the money reaches Panama, what it really costs, and how to sidestep the most expensive mistakes.
The United States is by far the largest source of money sent to Panama — in the first half of 2023 it accounted for 61.5% of all remittances the country received, and total inflows reached roughly $531.6 million in 2024.
The community behind those flows is sizeable and long-established: an estimated 240,000 people of Panamanian origin lived in the US in 2021, up 134% since 2000, of whom about 85,000 were born in Panama (Pew Research Center).
They are concentrated in Florida and New York (about 17% each), California, Texas and Georgia, and the diaspora has a deep historical tie to the US through the Panama Canal — many are descendants of the former Canal Zone 'Zonians'.
The crucial point for this route is that Panama uses the US dollar as cash and pegs its own currency, the balboa, one-to-one to the dollar, so when you send dollars from the US there is effectively no currency conversion — your recipient receives the very same dollars you send.
That changes how you compare. With no meaningful exchange-rate spread for a provider to hide, the only thing separating one service from another is the fee and how many of your dollars actually arrive.
The cheapest options here are the providers that genuinely serve US senders — Wise, Instarem and OFX — not the UK-only banks and brokers.
Sending from the United States: what you need
Sending from the United States is simple on this route because there is no currency to exchange — Panama uses the US dollar as cash and pegs the balboa to it one-to-one, so the dollars you send are the dollars your recipient receives.
The first transfer takes a few minutes to set up; later ones are near-instant.
Compare on the dollars that arrive after the fee
Panama's currency, the balboa, is pegged one-to-one to the US dollar, and US dollars circulate as the country's cash — so there is no exchange rate to cross and no FX margin to worry about. Your recipient effectively receives dollars.
That means the comparison comes down to one thing: the fee, and therefore how many of your dollars actually land in Panama. Use the live comparison above, which shows only providers that serve US senders, ranked by the amount delivered after the fee.
Get your recipient's Panama bank account or pickup details
For a bank deposit you need the recipient's full name as it appears on the account and their account number at a Panamanian bank; some services also ask for an address and phone number, and a wire may need a SWIFT/BIC code.
Where a provider offers cash pickup instead, the recipient collects the money with a reference number and a valid government photo ID. Confirm with your recipient which they prefer, and exactly how their name appears on the account, before you start.
Verify your identity once
A US-resident sender verifies identity on first use to meet anti-money-laundering (KYC) rules — typically a government photo ID such as a driver's license or passport, plus proof of address, and sometimes an SSN or ITIN for larger amounts.
It takes a few minutes and is a one-off; larger or frequent transfers may prompt a question about the source of funds.
Fund the transfer in dollars and send
Pay from your US bank account by ACH transfer, which is usually free but can take a couple of business days to clear, or by debit card, which is usually instant. Avoid a credit card — most issuers treat a money transfer as a cash advance and add a fee plus interest from day one.
Because both sides are in dollars, nothing is converted; the dollars you send are released to your recipient, and you get a confirmation by email or app.
Funding the transfer from the United States by ACH bank transfer is usually free, though it can take a couple of business days to clear; a US debit card is normally instant. Avoid a credit card — most issuers treat a money transfer as a cash advance and add a fee plus interest from day one.
There is no US tax simply for sending money abroad to support family.
Because Panama uses the US dollar as cash and pegs the balboa one-to-one to it, the whole transfer stays in dollars and there is no meaningful exchange-rate margin on this route, so a low or zero fee is what makes one provider cheaper than another. This is general information, not tax advice.
How the money reaches Panama
How your recipient gets paid
Panama does NOT use an IBAN. For a bank deposit you give the recipient's account number and their bank's name (the main banks include Banco General, Banco Nacional de Panama, Banistmo and BAC Credomatic), and the bank's SWIFT/BIC handles the international leg behind the scenes.
For a cash pickup you do not need an account at all - just the recipient's full legal name and the reference number. Because Panama uses the US dollar as its everyday money, the funds land as US dollars either way.
How the money is delivered
Once your pounds are converted, the money is delivered locally inside Panama. You don't choose the network — the provider does — but here is what is used.
Ways your recipient can receive it
Most providers can pay into a bank account: the recipient's US-dollar account number at a Panamanian bank (Banco General, Banco Nacional de Panama, Banistmo, BAC Credomatic) or cash pickup: collected in US dollars with photo ID and the reference number at a Western Union or local agent. The right choice is usually whichever is cheapest and fastest for your recipient. Cash pickup is the fallback where a bank account or wallet isn't available.
What you actually pay to send money to Panama
Panama uses the US dollar, so there is no pound-to-balboa conversion - the family simply receives US dollars. Your cost is the spread on turning pounds into US dollars, plus the provider's fee.
The exchange-rate mark-up
The big one. Banks and some apps quote a rate a little worse than the real mid-market rate and keep the difference — often 2% to 5%. Because it is a slice of the whole amount, it usually dwarfs any upfront fee.
Correspondent-bank fees
An ordinary bank wire can pass through one or two intermediary banks, each able to take a small cut before the money arrives. Specialists using local payment networks usually avoid this entirely.
"No fee" hiding a poor rate
A headline "zero fee" means little if the rate is weak. Judge an offer by the money that actually arrives, not by whether a fee is shown — the comparison above ranks providers exactly that way.
Your money arrives as US dollars - so the cost is the GBP-to-USD spread plus the fee
Panama is dollarised: the recipient gets US dollars, not a local currency. That means there is only one conversion in play - your pounds into US dollars - and the whole cost of the transfer is the margin a provider adds to that GBP/USD rate plus its upfront fee.
There is no second, hidden local-currency conversion to lose money on. Compare providers purely on how many US dollars actually land for your pounds.
Cash pickup usually costs more than a bank deposit
Collecting cash at a Western Union or local agent counter is fast and familiar, but that convenience is priced in - the agent's margin sits inside a weaker GBP/USD rate. Where your recipient has a Panamanian bank account, a US-dollar deposit is usually the cheaper route.
Either way, compare on the US dollars actually delivered, not the advertised fee alone.
It all lands in US dollars - so compare the GBP-to-USD deal
It all lands in US dollars - so compare the GBP-to-USD deal
The thing that trips people up with Panama is expecting a local-currency rate. There isn't one for everyday money: Panama uses the US dollar, and its balboa is pegged one-to-one and circulates only as coins.
So whether your recipient takes the money into a bank account or collects it as cash, they receive US dollars. The practical upshot is that the entire cost of your transfer is decided by one thing - how good a GBP/USD deal your provider gives you, counting both the rate and the fee.
There is no second conversion hiding in the background, so just compare providers on the number of US dollars that actually arrive for your pounds.
How to avoid fraud when sending money to Panama
On any large transfer the biggest risk is rarely the exchange rate — it is criminals getting between you and the money. These simple rules are worth knowing before you send.
Romance scam
Rule: an online partner you have never met in person asks for money - for a flight, an emergency, customs fees. This is one of the most documented frauds in cross-border money corridors. Never send money to someone you have only met online, however convincing the story.
Fake cash-pickup reference scam
Rule: never share the transfer reference number with anyone who contacts you out of the blue. Whoever holds that code plus matching ID can collect the US dollars at a Western Union or local agent, so only ever pass it to the person you are actually sending to - and only after you have confirmed by a call or message you initiated.
"Pay a fee to release your money" scam (advance-fee fraud)
Rule: no Panamanian bank and no agent charges your recipient an upfront fee to release an incoming transfer - the payout is automatic. Anyone in Panama asking your family to pay a 'customs', 'release' or 'tax' fee to free money that is on its way is a fraudster; a genuine inbound family remittance is tax-free on arrival.
Property / investment-pressure scam
Rule: Panama is a popular spot for overseas property and 'guaranteed return' pitches. Never wire a deposit or investment under time pressure to an account you cannot independently verify. Confirm any large transfer in writing through a regulated channel, and be wary of anyone rushing you to send before you can check.
If you are a victim of fraud, in the UK, report it to Action Fraud at actionfraud.police.uk or call 0300 123 2040; in Panama, your recipient can report fraud to the national police and raise banking complaints with the Superintendency of Banks of Panama.
Is money sent to Panama taxed?
What the rules say
money sent to family or as a personal gift is generally not treated as taxable income for the person receiving it in Panama, and Panama largely taxes only income earned inside the country rather than support sent from abroad.
This is general information, not tax advice; for anything large or unusual (buying property, an inheritance, a business stake) the recipient should take advice from a qualified Panamanian adviser
Keep your paperwork
On a large transfer the UK firm must run a source-of-funds check — that is a compliance step, not a tax. Keep evidence of where the money came from (a sale statement, pension or investment paperwork, or bank statements) and a big transfer moves through far more smoothly.
When is the best time to send money to Panama?
For a one-off transfer the rate on the day is what counts — and it moves constantly. The aim is less about guessing the perfect moment and more about removing risk on payments you already know are coming. As a guide, once the money is sent cash pickup at a Western Union or local agent is usually ready within minutes once the transfer clears; a US-dollar deposit straight to a Panamanian bank account typically lands the same or next business day; the slow part is normally the compliance checks on the UK sending side before the money leaves.
Because Panama runs on the US dollar, there is no local-currency rate to track - the only exchange that happens is turning your pounds into US dollars. So the thing to watch is the GBP/USD rate, which moves with the wider market rather than anything Panama does.
Demand still bunches up around Christmas and the start of the school year, when families lean hardest on money from abroad. Providers can quietly widen their margin into those busy windows, so if you have a big send coming, line it up a little ahead of the rush.
Lock the rate for a known date. If a payment is weeks away, many specialists let you fix today's rate now (a forward contract), so a sudden market move can't blow a hole in your budget before the money is due.
Set a target with a rate alert. For flexible transfers, you can set the rate you want and be notified (or trade automatically) when the market reaches it — useful when you have time on your side and no fixed deadline.
The costliest mistakes when sending to Panama
A handful of avoidable slips account for most of the money people lose. Each is easy to sidestep once you know to look.
Defaulting to your bank without comparing. The bank's rate mark-up usually costs far more than any fee, and it is easy to miss because it is built into the rate rather than shown separately.
Judging by the fee, not the amount delivered. A "no fee" offer can still be the worst deal if the rate is poor. Always compare on what actually arrives.
Mistyping the account or bank code. If the account details are wrong the transfer can bounce back after a delay, or reach the wrong account. Always check them against details your recipient sent in writing.
Trusting bank details that arrived by email. Payment-diversion fraud is a real risk — always confirm the receiving account by phone on a trusted number first.
Using an unregulated or cold-calling firm. Check the company on the FCA Register before you move any money, and never act on an out-of-the-blue offer.
Forgetting the family receives US dollars, not a local currency. People expect a balboa or a local-currency rate, but Panama runs on the US dollar - the balboa is just coins pegged one-to-one. The only conversion is pounds into US dollars, so the cost to compare is the GBP/USD margin plus the fee. Judge providers on the US dollars that actually arrive for your pounds, nothing else.
Sharing the cash-pickup reference with anyone but the collector. For a cash pickup, whoever holds the reference number and a matching name can walk into the agent and collect the US dollars. Only pass it to the person you are sending to, and only after you have confirmed by a call or message you started yourself - never in reply to one that came to you out of the blue.
How do most people send money to Panama?
For most people sending money home, the simplest and cheapest route is a specialist money-transfer app or company paying straight into the recipient's bank account: the recipient's US-dollar account number at a Panamanian bank (Banco General, Banco Nacional de Panama, Banistmo, BAC Credomatic). Judge every provider by the amount that actually arrives — and confirm the receiving details before you send.
Frequently asked questions about sending money to Panama
Effectively US dollars. Panama uses the US dollar as its circulating cash, and its own currency — the balboa — is pegged one-to-one to the dollar, so there is no separate exchange rate on the receiving leg.
When you send dollars from the United States, no meaningful conversion happens and your recipient gets the same dollars you send. That is why on this route you compare providers on the fee and the amount delivered, not on an exchange rate.
The fee. On most international routes a provider makes money two ways — a visible fee and a hidden margin built into the exchange rate.
Here, because both sides are in US dollars, there is no exchange rate and no margin to hide, so the cost is just the transfer fee. That makes this corridor unusually easy to shop: the provider that charges the lowest fee — and so delivers the most of your dollars — is simply the cheapest.
On this route the realistic, well-priced options for a US-based sender are Wise, Instarem and OFX. Many of the brands that appear in UK comparisons are banks and brokers that only serve British senders and do not help here.
Because the corridor is dollar-to-dollar, the best choice is simply whichever of these delivers the most dollars after its fee for the amount you are sending — which is what the live comparison above ranks.
It depends on the payout method and how you pay. Once a transfer clears, a bank deposit or cash pickup can arrive quickly, while some bank deposits take a little longer depending on the receiving institution.
The slower part is usually the funding leg: an ACH bank transfer from the US can take a couple of business days to clear before the dollars are released, whereas a debit card is usually instant.
US dollars. Panama has used the US dollar as its everyday money since 1904 - it is the oldest continuously dollarised economy in the Americas - and its own balboa is pegged one-to-one and circulates only as coins.
So whether the money goes to a bank account or is collected as cash, the family receives US dollars. The only conversion in play is your pounds into US dollars.
No. Panama does not use IBANs. For a bank deposit you need the recipient's account number and their bank name (the main banks include Banco General, Banco Nacional de Panama, Banistmo and BAC Credomatic); the bank's SWIFT/BIC handles the international leg behind the scenes.
For a cash pickup you only need the recipient's full legal name and the reference number - no account at all.
Almost always a specialist money-transfer company rather than your high-street bank. Because the family receives US dollars, the only cost is the margin your provider adds to the GBP/USD rate plus its fee.
There is no hidden second conversion to lose money on. Cash pickup usually costs more than a bank deposit.
Compare providers on the US dollars actually delivered for your pounds - see the live comparison above.
Cash pickup at a Western Union or local agent is usually ready within minutes once the transfer clears the checks on the sending side. A US-dollar deposit straight to a Panamanian bank account typically lands the same or next business day.
The slower part is normally the verification on the UK sending side before the money is released.
Money sent as family support or a personal gift is generally not treated as taxable income for the person receiving it in Panama, and Panama largely taxes only income earned inside the country rather than support from abroad.
This is general information, not tax advice; for anything large or unusual, such as a property purchase or an inheritance, your recipient should check with a qualified Panamanian adviser.
Because Panama uses the US dollar for everyday spending and its balboa is fixed one-to-one and exists only as coins. There is no floating local currency to convert into, so the only rate that matters is GBP to USD.
That actually simplifies things: you just compare providers on how many US dollars arrive for your pounds, counting both the rate and the fee.
Yes. Cash pickup is available in Panama through Western Union and local agents, paid out in US dollars.
Your recipient needs their government photo ID and the reference number you give them - no bank account is required to collect. The most common reason a payout is refused is a name on the transfer that does not match the ID exactly, so send their full legal name.
Our sources & how we keep this current
Last updated: June 2026. The live rates above refresh automatically, and we review the rest of this guide every month — updating it whenever the rules on payments, tax or regulation change.