Zapp, a money transfer service that operates through WhatsApp, announced the expansion of its services to Guatemala, Honduras, El Salvador, and Nicaragua. With this expansion, Central American migrants in the United States can now send money to family and friends back home directly through WhatsApp, eliminating the need for separate apps or physical visits.
The move addresses a critical need for the estimated millions of Central American migrants living in the U.S., who sent over $23 billion in remittances to their home countries in 2024, according to World Bank data. By leveraging WhatsApp, which has over 2 billion users globally and is particularly popular in Latin America, Zapp aims to simplify the remittance process and reduce barriers to financial inclusion.
Recipients in the new markets can choose to receive their money through either a direct bank deposit or cash pickup at a broad network of banks and retail locations. In Guatemala, more than 15,000 banks and payment locations are available, including G&T Continental, Banrural, Banco Industrial, Elektra, and Banco Azteca. Transfers from $5 to $2,999 incur a fee of $4.74 for bank deposits and $5.74 for cash withdrawals, with a fixed rate for the entire range.
In Honduras, the network includes more than 8,000 bank deposit and cash withdrawal locations, such as Banco Atlántida, Ficohsa, BAC Credomatic, and Elektra. Fees are tiered: $5.99 for amounts from $5 to $200, $13.99 for up to $1,000, and $32.99 for up to $3,000, with approximately $1.00 added for every additional $200.
El Salvador offers more than 6,000 bank branches and affiliated businesses, including Banco Agrícola, Banco Cuscatlán, Super Selectos, and Walmart. For bank deposits, fees range from $4.99 for $100-$150 to $19.99 for up to $1,500, while cash withdrawals incur a $1.00 surcharge. Nicaragua has more than 5,000 banks and businesses, including Banpro, Banco Lafise, and BAC Credomatic, with fees starting at $5.99 for $100-$200 and increasing by approximately $1.00 per additional $100.
Zapp operates as an authorized agent of Spectrum Global Payment Solutions, Inc. (NMLS ID 937914), a licensed money transmitter in Central America. Every transaction is covered by a money-back guarantee. The service is not affiliated with Meta or WhatsApp; it simply uses WhatsApp as a communication channel.
The expansion could significantly impact the remittance landscape by offering a more accessible and user-friendly option for migrants who may lack access to traditional banking services. By integrating with a widely used messaging platform, Zapp lowers the technological barrier, allowing users to send money with just a few taps. This development is particularly important for families in Central America who rely on remittances for basic needs such as food, healthcare, and education. As competition in the digital remittance space intensifies, Zapp's focus on WhatsApp could set a new standard for convenience and accessibility.
