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Send Money To Honduras

This guide covers the different ways of sending money to Honduras, the information you need, and the reasons why money transfer services are the best channel for you.

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How To Send Money To Honduras

Sending money to Honduras is simple and easy. Follow these steps to get started.

Find a Trusted Provider

Use our comparison table to find the best provider for your needs.

Sign Up and Deposit

Sign up with the provider and deposit the amount you want to transfer.

Transfer Money

As soon as you're ready, you can start sending money online.

Ways To Send And Receive Money In Honduras

There are multiple ways to easily send and receive money in Honduras but these will largely depend on the provider you decide to use. Below you will find everything you need to know about sending and receiving money. 

Sending Money To Honduras
Receiving Money In Honduras

Ways to Send Money to Honduras

Hondurans sending money home have the option of banks or money transfer service providers. The choice of the channel to use largely depends on the recipient location, their banking status, the urgency of the funds, and the distributive network of the different players in the remittance industry.

International Wire Transfers

The Honduras banking system consists of 15 private banks and a total of 7 financial groups. Five of the banks control 93 per cent of the bank remittance channel in the country. In such a tight market the benefits of competition such as low-priced transfers and technologically advanced products are minimal.

Interbank transfers are safe and convenient for sending large amounts of money. When sending from the United States, you’ll have an advantage because the Honduras financial system has 50.2 per cent of its deposits in the United States banks.

The biggest problem with the banking channel for sending remittances is that a large population of Hondurans are unbanked with little or no access to mainstream financial services. Secondly, bank transfers are relatively more expensive and much slower to complete.

Money Transfer Services

Most Honduran migrants in the U.S. use money transfer operators (MTOs) when sending money home. The transfers rarely exceed $3,000 per transaction making this method of sending very convenient.

While it is true that MTOs offer cheaper options to transfer money home, most Hondurans do not prioritise cost when sending money. They look at the geographical proximity of the provider in the country of destination, extended service hours, quick delivery times, reliability and non-bureaucratic operations.

There are two main ways of sending money to Honduras using money transfer service providers: bank transfers and cash pick up.

Bank Transfers- You can send money from the website or mobile app of the provider you choose straight to the bank account of your loved one. Unlike the traditional interbank transfer, this method is cheaper and takes a maximum of 3 days with providers such as WorldRemit and MoneyGram.

Cash Pick Up -Providers such as Xoom, MoneyGram, Remitly, and Western Union offer cash pickup as a sending option. This method is convenient when sending smaller amounts under $1,500.

Xoom has 530 locations from where your loved ones can collect their cash. MoneyGram has 1,500 locations spread across Honduras.

Transferring money through MTOs is a simple process. All you need is to signup for an account. You can register online through the provider’s website or use a downloadable app.

After you register for the account, pay for your transfer. There are three options you can use to pay for your transfer; bank debit, credit card, and debit card. Of the three methods, paying using a credit card is the most expensive.

With your transfer account funded, you can do the transfer to a bank or cash pick up location straight from the website or mobile app. Providers like Western Union allow you to start the sending process online and complete it at a physical store of your choice.

International Money Orders

Sending money to your family, relatives, and friends using money orders is a safe and convenient option. You can purchase an international money order from any post office in the United States. The maximum you can send per money order is $700.

In Honduras, you can cash international money orders at the following institutions, Banco Ficohsa, Elektra–Azteca, and Banco Mercantil. BAMER S.A. Together, they have locations totalling 543.

What’s Needed to Send Money to Honduras

Whether you choose to send money via WorldRemit, Western Union, MoneyGram or Xoom, there is some information you’ll have to provide. The information varies from one provider to the other. Below is a general list of what will be required irrespective of the provider you choose.

  • The name of the sender as it appears on official government-issued documents
  • An identity card issued by the state or government. In the United States, the sender can provide a passport, driving licence or social security card
  • The amount to be sent
  • The name of the recipient as it appears on their government-issued identity card
  • The physical address and mobile phone number of the recipient
  • If you choose a bank transfer, you’ll have to provide the Swift code, bank name, branch name and account number of the beneficiary

You may be asked for more information such as the purpose and source of the funds. Providers are under strict regulations hence must pass on the rules to their customers.

Best Ways To Send Money To Honduras

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Top Provider
Amount Received
By Bank Transfer
24,476.00
HNL
Fees: $11.99
Rate: 24.47590
Payment Options
Speed
Debit Card
1-2 Hours
Credit Card
1-2 Hours
Bank Transfer
1-2 Hours
Key Features
First 3 Transfers Free
Cash pickup to over 170,000 locations
No domestic transfers
Current Mid-Market Rate: 1 USD = 24.720349 HNL
* Some rates may be indicative.

Common Reasons for Sending Money to Honduras

More than 20 per cent of households in Honduras receive remittances. Over half of these households are in urban areas while slightly over 40 per cent are in rural areas. There are different reasons why Hondurans in the diaspora send money home and below are some of the top ones. 

Basic Living Expenses

This category takes the lion share of remittances. Over 70 per cent of money sent is used to finance basic consumption, covering expenses such as food household items and clothes. One in five Hondurans lives in extreme poverty and remittances form an important part of household income.

Medical Expenses

The Ministry of Health in Honduras provides medical care to over 90 per cent of the population. However, most of this care is available in urban areas and developed cities. Rural populations find it difficult accessing quality care or any care at all. Many of them rely on remittances to travel to cities for medical treatment or to pay for private healthcare.

Education

The level of educational attainment in Honduras among recipients of remittances is much higher for primary education at 56 per cent compared to 52 per cent for the general population. The public education in Honduras is free, but most Hondurans prefer the high quality but a little pricey private education system.

Housing

Hondurans abroad send money to their families to help in the purchase of lots of land for housing construction. For those who are unable to buy houses in cash, they usually go for mortgages and the pay up the loans over time.

Social Contribution

Apart from family-related expenditures, Hondurans may send money home for social contributions. For instance, some of their contributions help to finance weddings, funerals, festivities, community development and so forth.

Why Send Money With a Money Transfer Service? 

As noted above, money transfer services have gained traction and Hondurans are increasingly embracing MTOs. There are top reasons why money transfer service providers are gaining popularity in both rural and urban remittance markets.

Convenient Locations

As opposed to banks that are mostly in urban areas, money transfer service providers set up shop through agencies and have lots of payment locations close to recipients. It is such kind of convenience that makes the MTO channel the best to send and receive money. For instance, Xoom has 530 locations in Honduras.

Low Cost of Transfer

The cost per transfer to Honduras is much lower than the traditional ways of sending. The transaction fees consist of charges for the payment methods used and a small margin for the provider. MTOs can afford to charge low margins because of the volume of transactions they handle daily.

Simple to Setup

Signing up for an account and transferring money to Honduras is very simple on the MTO platform. The information needed to open an account is your name, email address, and phone number.

Favourable Exchange Rates

Providers such as TransferWise use the mid-market rate or real rate when translating one currency to another. The mid-market rate is between the buy and sell rates and gives the sender more Honduran lempira (HNL) for a unit of the source currency.

Multi-Currency Support

MTOs operate in hundreds of countries and territories. For instance, Western Union and MoneyGram are in 200+ countries while Xoom is in 140+ countries. This degree of currency representation and support help Hondurans from any corner of the world to send money home.

Speed of Transfer

Speed is a major factor when sending money to Honduras. Most Hondurans prefer speed to cost of transactions. In the event of emergencies such as floods and storms, the money needs to get to the destination fast. MTOs can send money in under an hour or within a few days.

Funding the transfer can be done in one of three ways: a credit card, a debit card, or a bank debit. Once your transfer is paid for, you can send money online on the provider’s website or using a downloadable mobile app

Things to Consider When Sending Money to Honduras

When sending money to Honduras, you need to think through and consider certain factors. Below is a list of a few of the considerations to make.

  • High Rates on Fixed Deposits - In a bid to attract diaspora remittances, the government of Honduras through the banking system offers higher interest rates on term deposits. For instance, you can make Fixed Term Deposits (FTDs)  of between 3 and 36 months at negotiated rates of up to 13 per cent. Such rates can give you a decent return on substantial deposits and can serve as an alternative investment channel.
  • Exchange Rate Regime- Honduras uses a crawling peg exchange rate system. This regime allows the Honduras lempira to fluctuate up to a maximum of 7 per cent to the dollar. When sending money, it is crucial to consider the direction of the lempira so that you can get more of the destination currency for a unit of the source currency. Providers like TransferWise can help you lock in the exchange rate for a certain duration. This feature allows you to enjoy predictable exchange rates.
  • BRIDGE Initiative - The United States government signed a memorandum of understanding with Honduras and El Salvador known as the Building Remittance Investment for Development, Growth, and Entrepreneurship (BRIDGE). Based on the remittance inflows, banks in Honduras and El Salvador will be able to raise lower-cost financing in the international capital markets for infrastructural development in their home countries. This initiative implies that the more money you send through formal channels, the greater the securitization of banks and indirectly you’ll be financing local development in Honduras.

Therefore, the next time you are sending money to Honduras, check across the various providers, their fees, exchange rates and speed of transfer. Such a cross-comparison ensures that you make the right decision on the MTO to use when sending money home.

Your Questions Answered

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Looking to Send Money Somewhere Else? 

Sending money anywhere else in the world is as easy as sending money to Honduras. If you're looking to send money to another country, here is the list of the most popular destinations.

Jonathan Merry

Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com