With strict covid-19 restrictions suffocating the informal sector of the economy, there is increasing demand for e-commerce for everyday necesities.

PayPal in alliance with Banistmo, through its digital banking Nequi, integrated capabilities so that any business or person who sells a product or service outside Panama, will be able to withdraw their payments via PayPal and make them effective locally thanks to the integration of their platforms.

Previously, it was only possible to use Paypal connected to a US bank account, which would only be obtainable by traveling outside the country and perhaps forming a company. Local banks are more or less closed from the outside world, with steep fees for receiving international transfers.

To link accounts, users need only have a Nequi account, which can be opened free of charge and immediately upon registration of the required data. This way you can transfer money from your PayPal Panama accounts to your Nequi accounts, in a few minutes and without having to wait in line or fill out paperwork.

It is important to note that this service has a low cost per operation, in addition to being fast and can be performed via mobile phone. Each time the user transfers money from PayPal to Nequi, they must pay 5% commission (up to a maximum of USD $10); in addition, the money will arrive instantly to their Nequi Panama account.

Once the funds are in Nequi, the users, through the app, will be able to make free transfers to any part of the country, pay online, keep them in Nequi, separate them in pockets inside the app, or withdraw cash or transfer it to their bank accounts as normal. These funds could then be used to pay bills or groceries since movement is heavily restricted in the country.

Globalization has generated new economic growth and promoted new technologies, especially in emerging markets. For this reason, the need for accessible and reliable financial services has increased. This requires innovative companies, such as PayPal and Banistmo, through Nequi, to place greater emphasis on offering solutions that meet the needs of a diverse consumer and business base in markets with as much potential and opportunity as Panama.

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