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 to visit physical locations or download separate apps.
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. Transfer fees for Guatemala start at $4.74 for bank deposits and $5.74 for cash withdrawals for amounts between $5 and $2,999, with a fixed rate for the entire range.
In Honduras, recipients can access over 8,000 bank deposit and cash withdrawal locations, including Banco Atlántida, Ficohsa, BAC Credomatic, and Elektra. Fees range from $5.99 for transfers up to $200 to $32.99 for transfers up to $3,000, increasing by approximately $1 for every additional $200. El Salvador offers more than 6,000 bank branches and affiliated businesses such as Banco Agrícola, Banco Cuscatlán, Super Selectos, and Walmart. Fees for bank deposits start at $4.99 for transfers between $100 and $150, while cash withdrawals incur a $1 surcharge. Nicaragua provides more than 5,000 banks and businesses, including Banpro, Banco Lafise, and BAC Credomatic, with fees starting at $5.99 for transfers between $100 and $200.
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. Zapp is not affiliated with Meta or WhatsApp; it simply uses WhatsApp as a communication channel.
The expansion addresses a critical need for affordable and convenient remittance services. According to the World Bank, remittances to Central America have grown significantly, with millions of families relying on these funds for daily expenses. By leveraging WhatsApp, Zapp reduces barriers to sending money, potentially lowering costs and increasing accessibility for migrants who may lack access to traditional banking or prefer digital solutions. This move could disrupt the remittance market by offering competitive rates and a familiar user interface.
