Trying to plan ahead so any know if card payments are common at hostels in Panama or cash is king?
Don’t assume cards will get you far once you leave the capital. In Bocas, Puerto Viejo side trips, and San Blas tours, it was all cash. Hostels often ask you to pay at check-in in dollars, which works fine since USD is accepted everywhere in Panama. Even if you book online, they’ll want bills when you arrive.
I really liked how easy Panama City hostels made it with card payments. I paid with Mastercard at Magnolia Inn and it was instant. But then in Las Lajas Beach Hostel they told me “cash only.” It wasn’t a huge deal because ATMs are usually around in towns, but you need to plan withdrawals in advance so you don’t get stuck.
My backpacking through Panama was smooth but I learned quick that cash works everywhere, cards only sometimes. Hostels in Boquete and Santa Catalina were cash-only, while those in Panama City swiped no problem. I once had a card machine charge fail in Bocas Town and had to find a Banco General ATM late at night. It wasn’t fun. If you’re traveling around, keep both options.
In Panama City I found most of the popular hostels like Luna’s Castle and Selina Casco Viejo had no problem taking card. Out in Bocas del Toro though, several smaller spots insisted on cash. It’s pretty split depending on the size of the hostel and how touristy the area is. I’d suggest carrying some balboas or USD just in case. Card networks can be down randomly, so even if they say they accept Visa, don’t rely on it completely.