Mexico & Central America
Money, cards and tipping in Panama
PABBalboa
Money in Panama
Mixed: cards and cash US dollars are used, with local balboa coins. Cards work widely in Panama City; elsewhere carry small bills, as $50s and $100s are often refused. US$1 ≈ $1.00 (03 Oct 2026).
Key facts
- Tipping: About 10% in sit-down restaurants, sometimes added to the bill. Taxis aren't tipped; tip guides and boat crews.
- ATMs: ATM fees for foreign cards are among the region's highest, several dollars per withdrawal; use machines inside banks or malls.
- Paying by phone: Contactless and Apple/Google Pay are common in Panama City. Yappy, the local transfer app, needs a Panamanian bank account.
- Price level: about 45% of US prices (World Bank PPP).
Cash or card, by place
| Place | Cards | Notes |
|---|---|---|
| Panama City | Mixed: cards and cash | Cards and contactless work in malls, hotels and many restaurants. Carry small US bills for taxis, markets, buses and street food; $50 and $100 notes are often refused. |
| Bocas del Toro | Mixed: cards and cash | Cards work at larger hotels and restaurants, but many hostels, boats and small cafés prefer cash. ATMs in Bocas Town can run empty; bring US dollars. |
| Boquete | Mixed: cards and cash | Cards work in hotels, supermarkets and many restaurants. Carry small US bills for buses, taxis, markets and small cafés. |
| San Blas Islands | Cash only | Cash only: bring US dollars in small bills. There are no ATMs on the islands, and island entry fees must be paid in cash. |
| Santa Catalina | Mostly cash | Mostly cash in the village; a few hostels and restaurants take cards. There is no reliable ATM, so bring US dollars from Santiago or Panama City. |
| Pedasí | Mostly cash | Cash is the norm. A few restaurants take cards and the town has few ATMs; bring small US bills. |
Quick answers
Do you tip in Panama?
About 10% in sit-down restaurants, sometimes added to the bill. Taxis aren't tipped; tip guides and boat crews.
Is Panama cashless?
Mixed: cards and cash. US dollars are used, with local balboa coins. Cards work widely in Panama City; elsewhere carry small bills, as $50s and $100s are often refused.
What currency does Panama use?
The Balboa (PAB). US$1 ≈ $1.00 (03 Oct 2026).
Sources
- ExchangeRate-API open rates
- US State Department travel advisory
- GOV.UK foreign travel advice: Panama
- Government of Canada travel advice: Panama
- Servicio Nacional de Migración: remote worker visa requirements
- Speedtest Global Index: Panama
- World Bank open data
Compiled and reviewed by SoloSquare. How we compile and score this. Spotted something out of date? Tell us.