A comprehensive overview of the cards, payments and consumer banking market in Ecuador.
Card purchase volume reached 22 percent of total household spending in 2020, up from 17 percent in 2014. However, the impact of the pandemic and its associated restrictions are set to reduce that volume in absolute terms for 2020, as well as contribute to a trend-breaking decrease in profitability: profit per credit card approximately doubled over the six previous years, a growth pattern forecast to resume from 2021. New mobile money services Bimo and Bicoo arrived in 2019, replacing Dinero Electrónico, a central-bank-operated service that failed to gain traction among the unbanked and underbanked.
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Card Payments Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market data
Appendix IV: Mobile payments data
Appendix V: Profit pool
Appendix VI: Card networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquirers and processing
Appendix IX: Online acquiring data
Demographics and Economy:
The Republic of Ecuador has a relatively young population, with 29% under the age of 15 and just 8% over 64. The average age for the total population is 28.8 years, and life expectancy is 77.5 years.
Ecuador's payments environment developed positively between 2014 and 2020, especially in terms of reducing the unbanked population, increasing usage of electronic channels and expanding access-points coverage.
Between 2014 and 2020, the number of debit cards grew by 69% while credit cards grew by 15%. For 2021, VFR forecasts around 4.8% growth for debit cards in issue and around 5.9% growth for credit cards.
Ecuador's high mobile phone density has created an opportunity for the development of mobile money services ... In 2018, the government announced an agreement with banks and savings and loans cooperatives to develop new mobile money services.
The continuous reduction of the operating cost-to-revenue ratio between 2017 and 2020 has supported the continuous increase of profit per credit card from $39 in 2014 up to $83 in 2019.
Visa and Mastercard dominate the credit cards market in Ecuador, with competition from a sizeable number of Diners Club and American Express cards. Visa and Mastercard dominate the debit cards market with over 99% of cards in issue.
Key Retail Banks and Issuers:
After the US dollar was adopted as Ecuador's currency, the number of banks in the country remained relatively constant, with Banco del Pacifico as the only state-owned retail banking institution.
Acquiring and Processing:
There are eleven acquirers operating in this credit cards market, including Diners Club, Banco del Pacifico, Banco Pichincha and Banco de Guayaquil. VFR estimates that they jointly hold an 88% market share of total transactions and 81% of total billed volume.
Between 2014 and 2020, Ecuador's internet business to consumer (B2C) sales grew by 6.2 times reaching $3,120 million, of which, 78% were made with payment cards.
Regulatory and Markets Information:
The Ecuadorian financial system is composed of banks, financial corporations, savings and loans cooperatives, mutualists and public financial institutions. According to their regulator, banks constitute the largest and most important participant in the market.
Verisk reports deliver invaluable market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit in Latin America. Analysts and researchers use both primary and secondary source data and conduct in-depth interviews with Latin American industry executives and experts.
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