Panama E-commerce Market Analysis by Mordor Intelligence
The Panama e-commerce market currently generates USD 2.64 billion in 2025 and is projected to reach USD 3.91 billion by 2030, expanding at an 8.17% CAGR over the forecast period. Growth is anchored in Panama’s role as a logistics gateway for the Americas; continuous free-zone upgrades, expanded air-cargo capacity and government-sponsored connectivity programs are shortening delivery cycles and lowering fulfilment costs. Rapid smartphone adoption has entrenched mobile commerce as the primary transaction channel, while fintech wallets enlarge the addressable shopper base by bridging banking gaps. Retailers are prioritizing last-mile automation, warehouse robotics and AI-driven personalization to drive conversion, defend margins and counter rising cross-border competition. Global platforms leverage scale advantages, yet nimble local players win share through localized catalogues, hyper-local delivery and omnichannel service models that resonate with Panama’s urban consumers.
Key Report Takeaways
- By business model, the B2C segment held 88.05% of the Panama e-commerce market share in 2024, while B2B records the highest projected CAGR at 10.5% during 2025-2030.
- By payment method, digital wallets accounted for 46.12% share of the Panama e-commerce market size in 2024 and credit / debit cards are advancing at a 14.2% CAGR to 2030.
- By device type, mobile commerce captured 74.08% of transactions in 2024; the same segment is set to post a 9.8% CAGR over the forecast horizon.
- By B2C product category, Fashion & Apparel led with 28.23% of Panama e-commerce market share in 2024; Food & Beverages is forecast to expand at a 12.3% CAGR through 2030.
Panama E-commerce Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Government-backed "Agenda Digital Panamá 2025" accelerating SME digitalization | +1.5% | National, with emphasis on urban centers | Medium term (2-4 years) |
Fin-tech payment rails (Nequi, Yappy) widening addressable un-banked shopper base | +1.2% | National, with higher impact in rural areas | Short term (≤ 2 years) |
Logistics free-zone expansion (Colón, Panamá Pacífico) cutting delivery lead-times | +1.0% | National, with concentration in free zone areas | Medium term (2-4 years) |
Cross-border purchase appetite powered by U.S.–Panama trade preference | +0.8% | National | Medium term (2-4 years) |
Diaspora-remittance-linked gifting boosting international GMV | +0.7% | Urban centers with high international connectivity | Short term (≤ 2 years) |
AI-driven last-mile routing lowering fulfilment cost per parcel | +0.6% | Urban centers, particularly Panama City | Medium term (2-4 years) |
Source: Mordor Intelligence
Agenda Digital Panamá 2025 accelerating SME digitalization
Government programs that subsidize cloud tools, offer e-invoicing and provide free broadband under “Internet for All” lower entry barriers for 50,000+ micro and small businesses. Public-private hackathons and fast-track grants entice SaaS vendors to localize software, enabling merchants to list online inventories in weeks rather than months. As more SMEs integrate payment APIs and fulfilment dashboards, assortments expand, average order values rise and rural consumers gain wider product access.[1]European Commission, “Sector Overview – Panama ICT,” trade.ec.europa.eu
Fintech payment rails widening the unbanked shopper base
Digital wallets leapfrog legacy banking by allowing instant wallet-to-wallet transfers via phone numbers. With 74% of surveyed SMEs now accepting Yappy, checkout friction declines and first-time online buyers convert at higher rates. Interoperability between wallets and cards widens merchant acceptance, while biometric login increases trust. Rapid activation of QR codes at kiosks and open-loop transit systems further normalizes wallet usage beyond e-commerce.[2]Liriol Miranda Pino et al., “Fintechs Utilizadas por las PYMES,” Dialnet, dialnet.unirioja.es
Logistics free-zone expansion cutting delivery lead-times
The Colón Free Zone’s new 100,000 m² of bonded warehousing lets sellers pre-position inventory, slashing customs clearance from five days to same-day release. Panamá Pacífico’s one-stop shop reduces regulatory paperwork by 70%, letting 3PLs move inbound parcels to sortation centers within hours. Tocumen Airport’s planned e-commerce cargo terminal promises nighttime sortation and dawn doorstep delivery for high-velocity SKUs.[3]Charles Newbery, “Gateway to the Americas: Discover Panama’s Strategy to Be in Pole Position in Latin America,” DHL, dhl.com
Cross-border purchase appetite powered by U.S.–Panama trade preference
Duty-free thresholds aligned under the Trade Promotion Agreement keep landed costs low for U.S. catalogues. The 2025 withdrawal from the Belt and Road Initiative signals tighter U.S. partnerships, boosting consumer confidence in U.S. brands. Promotional campaigns tied to diaspora remittances encourage gifting, lifting average cross-border basket sizes and reinforcing Panama’s regional trans-shipment role.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Fragmented rural address system inflating delivery failure rates | -0.9% | Rural areas and developing urban zones | Medium term (2-4 years) |
Elevated import duties & customs clearance delays causing checkout abandonment | -0.7% | National, with higher impact on cross-border transactions | Short term (≤ 2 years) |
Cyber-fraud perception limiting card-not-present transactions | -0.5% | National | Short term (≤ 2 years) |
Low digital maturity of Tier-2/Tier-3 merchants | -0.4% | Secondary cities and rural areas | Medium term (2-4 years) |
Source: Mordor Intelligence
Fragmented rural address system inflating delivery failure rates
Lack of standardized street naming outside metropolitan areas triggers rerouting, multiplies driver calls and pushes redelivery expenses up to 12% of parcel cost. Operators pilot GPS pin-drop apps and community drop-points yet scalability remains constrained, tempering rural penetration.
Elevated import duties & customs clearance delays causing checkout abandonment
Variable tariffs and paperwork inconsistencies add up to 25% to imported basket values and create delivery windows ranging from three days to three weeks. Transparent duty calculators and prepaid duty models partially offset the pain, but many consumers still exit carts at the payment page, depressing conversion.
Segment Analysis
By Business Model: B2B digitalization accelerates
The B2C segment commanded 88.05% of 2024 revenue, yet the B2B arm is on track for a 10.5% CAGR, outpacing headline growth. Large distributors now embed RFQ engines, real-time inventory feeds and single-click credit lines, shrinking procurement cycle times. Vendors inside free zones exploit bonded stock to promise next-day dispatch to neighboring markets, underscoring Panama e-commerce market competitiveness for business buyers.
Second-tier suppliers adopt bank-backed storefront templates such as BAC’s Pyme Store, which bundles SSL, invoicing and courier integrations. As adoption scales, demand aggregation and dynamic pricing tools emerge, deepening marketplaces and distributing volume across smaller firms. The Panama e-commerce market size for B2B transactions therefore widens, narrowing the historic consumer bias.
By Device Type: Mobile commerce dominance
Mobile devices generated 74.08% of transactions in 2024 and hold the fastest trajectory at 9.8% CAGR, mirroring regional smartphone penetration. Telcos now bundle zero-rated shopping apps, and progressive web apps ensure smooth checkout even on 3G, underpinning retention. The Panama e-commerce market size linked to mobile screens is poised to expand through voice search, on-device biometrics and location-based offers.
Desktop remains relevant for high-ticket and B2B orders requiring multi-line entry and contract review, yet its share erodes yearly. Smart TVs and gaming consoles represent nascent channels; merchants test shoppable video and controller-based browsing for entertainment-linked categories. Omnichannel UX strategies align wish-lists across devices to improve customer lifetime value.
By Payment Method: Digital wallets lead, cards accelerate
Digital wallets held 46.12% share in 2024, reflecting trust and instant settlement. Wallet-to-wallet payouts enable micro-entrepreneurs to receive funds within seconds and pay suppliers without fees. APIs connect wallets to BNPL providers, enhancing basket affordability.
Credit and debit cards, while accounting for a smaller base, scale at 14.2% CAGR as issuers launch virtual cards, installment options and tokenized security. The Panama e-commerce market share of cards is set to edge higher as card-on-file convenience rivals wallet ease. Bank transfers and cash on delivery meet niche cases, whereas crypto payments remain experimental and compliance-heavy.

Note: Segment shares of all individual segments available upon report purchase
By B2C Product Category: Fashion leads, food accelerates
Fashion & Apparel captured 28.23% of 2024 turnover due to visual merchandising, rapid trend cycles and liberal return policies. Influencer collaborations and AI-assisted sizing reduce fit-related returns, preserving margin. Electronics follow closely, powered by duty-free zone arbitrage and brand-authorized refurb segments.
Food & Beverages grows at 12.3% CAGR as dark-store networks and quick-commerce couriers guarantee 30-minute grocery drops. The Panama e-commerce market size for online groceries is forecast at USD 68.6 million by 2030, doubling current penetration. Beauty, furniture and do-it-yourself units benefit from augmented reality previews and installment pay plans that lower purchase hesitation.
Geography Analysis
Panama City hosts the densest e-commerce activity thanks to 90% broadband coverage, high disposable incomes and warehousing clustered along the Canal corridor. The Panama Canal Zone’s proximity to Colón Free Zone creates seamless import-to-doorline flows, underpinning same-day delivery pilots for premium SKUs.
Secondary cities such as David and Santiago post double-digit growth as telco fiber rollouts improve connectivity and local SMEs embrace marketplace storefronts. BAC Pyme Store sign-ups from these zones rose 45% within six months, evidence that digital inclusion policies are resonating beyond the capital.
Rural districts remain under-penetrated; inconsistent addressing, lower card ownership and limited courier density slow uptake. Government satellite Wi-Fi towers and community parcel lockers aim to cut the last-mile gap. As connectivity stabilizes and fintech wallets proliferate, the Panama e-commerce market is expected to broaden its geographic footprint, balancing urban concentration with emerging rural demand.
Competitive Landscape
The competitive field is moderately fragmented. MercadoLibre combines marketplace scale with its Mercado Pago rail, monetizing checkout fees while harvesting behavioural data to refine targeted listings. Amazon leverages Prime shipping agreements via Tocumen cargo upgrades, courting affluent bilingual shoppers. Combined, these titans hold roughly 25% of gross merchandise volume.
Local incumbents Panafoto and Farmacias Arrocha protect share with click-and-collect, localized loyalty and Spanish-language customer service. They collaborate with last-mile couriers to promise 2-hour urban delivery, blunting global rivals’ speed claims.
New entrants such as Temu adopt cross-border duty-paid models and gamified discounting to entice value-hunters. Strategic assets now center on AI: Visa’s Intelligent Commerce suite gives merchants fraud-scoring and hyper-personalized offers, while startups apply route-optimization engines to cut courier mileage by up to 18%. M&A appetite is rising as players seek volume synergies and tech capabilities to sustain scale economics within the Panama e-commerce market.
Panama E-commerce Industry Leaders
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Amazon.com Inc.
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MercadoLibre Inc.
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Rappi Inc.
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Panafoto S.A.
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Félix B. Maduro S.A.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: Visa unveiled Visa Pay and stablecoin partnerships, opening AI-driven shopping rails across Latin America.
- May 2022: Temu announced regional expansion, bringing low-cost catalogues and 10-day shipping to Panama.
- April 2025: The Supply Chain Xchange released a 10-10-10 logistics blueprint, prompting retailers to pilot AI route planning.
- March 2025: Expo Logística Panamá 2025 highlighted drone trials and predictive fleet maintenance that could lower e-commerce freight costs.
Panama E-commerce Market Report Scope
E-commerce is the purchasing and selling of products and services over the Internet. It is conducted over computers, mobiles, tablets, and other smart devices. There are primarily two types of e-commerce, including Business-to-Consumer (B2C) and Business-to-Business (B2B).
The Panama E-commerce Market is segmented into B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-Commerce.
By Business Model | B2C |
B2B | |
By Device Type | Smartphone / Mobile |
Desktop and Laptop | |
Other Device Types | |
By Payment Method | Credit / Debit Cards |
Digital Wallets | |
BNPL | |
Other Payment Method | |
By B2C Product Category | Beauty and Personal Care |
Consumer Electronics | |
Fashion and Apparel | |
Food and Beverages | |
Furniture and Home | |
Toys, DIY and Media | |
Other Product Categories |
B2C |
B2B |
Smartphone / Mobile |
Desktop and Laptop |
Other Device Types |
Credit / Debit Cards |
Digital Wallets |
BNPL |
Other Payment Method |
Beauty and Personal Care |
Consumer Electronics |
Fashion and Apparel |
Food and Beverages |
Furniture and Home |
Toys, DIY and Media |
Other Product Categories |
Key Questions Answered in the Report
What is the current Panama E-commerce Market size?
The market generates USD 2.64 billion in 2025 and is projected to reach USD 3.91 billion by 2030.
Which product category leads online sales in Panama?
Fashion & Apparel leads with 28.23% of 2024 revenue, benefiting from visual merchandising and flexible returns.
How dominant is mobile commerce in Panama?
Mobile devices account for 74.08% of transactions and are forecast to grow at a 9.8% CAGR through 2030.
Why are digital wallets so popular among Panamanian shoppers?
Wallets like Yappy and Nequi offer instant, fee-free payments, broadening access for unbanked consumers and holding 46.12% payment share.
What challenges restrict e-commerce growth in rural Panama?
Fragmented addressing systems inflate delivery failures and, together with limited connectivity, slow adoption outside major cities.
How will Panama’s withdrawal from the Belt and Road Initiative affect e-commerce?
Closer U.S. alignment could simplify customs for U.S. goods and spur investment in logistics, bolstering cross-border sales.
Page last updated on: July 7, 2025