Ecuador Payment Landscape: Navigating a Dollarized Digital Economy

Ecuador is the world's largest exporter of shrimp and bananas, and the third-largest exporter of flowers.

Trade Partner: China is Ecuador's second-largest trading partner and largest source of imports.
E-commerce Growth: E-commerce in Ecuador is booming, with digital platform sales seeing significant growth.
Digital Potential: Big data infrastructure is still in its early stages, presenting massive market opportunities.
Payment Habits: Mainstream payment methods include cash and cards.
Investment Opportunities: The government encourages foreign enterprises to explore opportunities in investment, trade, and engineering contracting.

Infographic showing Ecuador's map with 24 provinces, total population of 18.34 million, and ethnic composition dominated by Mestizos.

01. Overview: The Pearl of the Pacific

Basic Facts

Located in northwestern South America, Ecuador covers 256,000 sq km, ranking 10th in Latin America. As of July 2023, the population is 18.34 million, concentrated in cities like Quito, Guayaquil, and Cuenca.

Economic Vitality

Ecuador's economy relies heavily on oil, agriculture, and fishing.

Grid showing Ecuador's top industries: Oil production, Bananas (world's 5th largest producer), Cacao, Mining, Aquaculture (Shrimp), and Tourism.

Bar chart displaying Ecuador's Nominal GDP growth reaching $118.8 billion in 2023 with a GDP per capita of $6,480.

GDP: Reached $118.8 billion in 2023, with a growth rate of 2.4%.
Oil: The primary economic pillar, producing nearly 500,000 barrels of crude oil daily.
Non-Oil Exports: Shrimp ($7.3 billion) and bananas ($3.3 billion) are critical to the economy.

Trade Relations

China is Ecuador's largest non-oil export destination. Bilateral trade is becoming increasingly diverse and balanced.

02. The Digital Economy & E-commerce

Ecuador launched the "Digital Ecuador Policy" in 2019 to accelerate digital transformation.

Statistics on Ecuador's digital infrastructure: 78% 4G coverage, 14.03 million internet users, and major ISPs like Grupo TVCable.

Goals: Increase telecom coverage, deploy 4G/5G, and promote IoT and AI.
Infrastructure: The government is investing in connectivity to boost internet penetration.

E-commerce: Rapid Expansion

E-commerce is a key part of the national "Digital Economy Plan." With innovation in ICT and digital transformation, online sales are growing rapidly.

Chart forecasting Ecuador's e-commerce sales reaching $5 billion in 2024, ranking No.7 in Latin America for penetration rate.

03. The Payment Battlefield: Cash vs. Digital

Ecuador has been a dollarized economy since 2000. The official currency is the US Dollar (USD).

Payment Habits

While cash remains dominant, mobile banking penetration is higher than in Mexico. E-commerce platforms also widely support Cash on Delivery (COD).

1. Cash Payments (Facilito)

Facilito: A leading mobile payment platform in Ecuador.
Features: Bill payments, mobile top-ups, and merchandise purchases via smartphone.
Integration: Supports Visa/Mastercard, Apple Pay/Google Pay, and Bank Transfers.
COD: Offers Cash on Delivery services, crucial for building trust with new online shoppers.

2. Credit & Debit Cards

Bank-issued cards are widely used for ATM withdrawals, in-store shopping, and online transactions.

3. Bank Transfers

A common method for both individuals and businesses, especially preferred for high-value B2B transactions due to its high security.

Conclusion: Opportunities and Challenges

For global enterprises, Ecuador offers a mix of opportunity and challenge.

Opportunity: Deepening bilateral cooperation and Free Trade Agreements (FTA) open new doors.
Challenge: The business environment needs improvement (ranked 129th in Ease of Doing Business 2020), and country risk remains relatively high.

Waffo helps you navigate this complexity by providing a secure

compliant, and localized payment solution, ensuring you can capture every opportunity in this dollarized market.