Online payments, a gateway to the digital ecosystem in Ecuador
In a constantly growing digital market like Ecuador, it is essential to understand the characteristics and needs of local consumers in order to succeed within an ever-evolving digital ecosystem. Although digital transactions have gained ground in recent years, cash still plays a significant role in the country’s economy, representing the preferred payment method for 36.5% of the population, where 7 out of 10 payments are made in cash. In this blog, we will explore the power of the main method within the Ecuadorian territory, understand the opportunities it provides to businesses looking to expand there, and how a leading payment gateway like PayRetailers can play a vital role in the growth and expansion of any type of online business in this dynamic market and throughout Latin America.
The engine of e-commerce as an opportunity for businesses
The influence of digital commerce on merchants worldwide continues to grow, and the increase in mobile device purchases demonstrates that consumers are advancing rapidly. In Latin America, the industry is still adapting and has been finding effective and secure solutions.
Internet access has significantly increased, with approximately 12 million users in Ecuador, representing around 71% of the population. Additionally, 93% of the population has access to mobile phones, which has piqued the curiosity of Ecuadorian buyers about the opportunities offered by this potential market. However, despite the digital progress in the country, the use of cash remains an important part of the Ecuadorian economy.
First and foremost, it is important to consider that 40% of the country’s adult population is unbanked, making cash the most viable and accessible option for these consumers and a gateway to digital commerce in Ecuador. Furthermore, this option is bolstered by the extensive network of ATMs throughout the country, which facilitate cash withdrawals using debit or credit cards issued by local and international banks.
Although cards are the second most used payment method in the past year, both in physical (72.8%) and online (70%) stores, Ecuadorians still exhibit some reluctance to share their credit card information, making cash perceived as a safer and more reliable payment method for them. This perception has prompted digital commerce companies in Ecuador to adopt the option of cash payments as a strategy to attract more customers and gain their trust.
In which industries do Ecuadorians invest the most?
- E-commerce: 20%
- Tourism: 39%
- Financial services: 41%
PayRetailers: Diverse Payment Methods, New Customers
Having a reliable and specialized payment gateway like PayRetailers can make a difference between the success and stagnation of your business in Ecuador and throughout Latin America. PayRetailers is a leading payment solutions platform that understands the importance of cash in the Ecuadorian market and offers a wide range of services designed specifically to meet the needs of local consumers.
One key feature of this Spanish payment company is its network of collaborators that facilitates cash payments throughout the country, including methods such as Western Union, Banco Guayaquil, Banco Pichincha, Mi Vecino, Red Activa, among others. This allows Ecuadorian consumers to make their online purchases securely and effectively, paying in cash from any nearby point, providing them with greater convenience and confidence in the process.
Digital commerce in Ecuador offers $3 billion in e-commerce transactions, and PayRetailers has seized this opportunity to support businesses by offering variety in payment methods and an effective strategy of local solutions in collaboration with financial institutions and traditional banks.
Furthermore, by facilitating access to formal financial services through cash payment options, PayRetailers contributes to bridging the gap between unbanked consumers and the world of digital commerce. This democratizes access to the benefits and conveniences of the industry, allowing a larger number of people to participate in Ecuador’s digital economy.
With its focus on localized payments and wide range of services, offering over 250 payment methods, PayRetailers positions itself as a crucial partner for businesses seeking to grow in Ecuador and throughout Latin America.
Although Ecuador is a medium-sized country, it is dollarized and has a population that is highly loyal to banks and financial institutions. What opportunities can you take advantage of for your business? Contact us for more information. Here.