Ecuador is the first Andean country in which the Google Wallet, an application that allows you to store and use cards, begins to work. And soon the mobile payment service created by Apple will be enabled.
Referential image of the Google Wallet.
The Google Wallet began operating in Ecuador on February 28, 2023. The system works in collaboration with the payment technology companies Visa and Mastercard.
The Google Wallet, an application that allows you to store and use cards , tickets, passes, IDs and keys, will be available to Diners Club and Produbanco customers.
“This is one of the milestones on our way to ensure safe and fast payment methods,” says Juan Fernando Maldonado, Diners Club Business Vice President.
The tool, enabled on Android phones, Wear OS and Fitbit devices, will allow users to make contactless payments from their phone or wearables from the credit and debit cards they add.
Through its Twitter account, Produbanco announced that Apple Pay, a mobile payment service created by Apple, will soon be enabled in the country.
Currently, Apple Pay, which works on iPhone and Apple Watch devices, is available in six Latin American countries: Argentina, Colombia, Costa Rica, Brazil, Mexico and Peru.
step by step
Google Wallet has an alternate card number (a token), which is device-specific and associated with a dynamic security code that changes with each transaction, Diners Club explains.
Here are the steps to follow to enable Google Wallet:
- Download Google Wallet.
- Select and open Google Wallet.
- Click on the add a card button.
- Scan or manually enter card details.
- Press “continue”.
- Accept the terms and conditions of the issuer.
The cell factor
Visa maintains that the Google Wallet is enabled amid the increasing use of digital payments in Ecuador.
In 2022, Ecuadorians made 183 million digital interbank transactions, for USD 176,729 million, according to the Central Bank (BCE).
It is an increase in value of 51% compared to 2019, before the Covid-19 pandemic.
Changes in habits during the health emergency, due to mobility restrictions and physical distancing, led to the migration of people towards digital payment methods.
Among the digital payment methods most used by Ecuadorians are cell phone applications and virtual banking web pages.
This is due to two factors, details Romina Seltzer, senior vice president and leader of Products and Innovation for Visa Latin America and the Caribbean.
The first is the large number of cell phones among the population of Ecuador. In 2022, six out of 10 people had an active cell phone in the country, according to the National Institute of Statistics and Censuses (INEC).
The second factor is that new technologies have allowed cell phones to become payment terminals, which means that more businesses can receive money digitally.
Greater sales
Countries, banks, businesses and citizens are increasingly prioritizing digital payment methods due to a number of benefits, says Seltzer.
On the one hand, citizens obtain more goods and services, because they can pay on websites and social networks; and they access credit, which allows them to buy more.
That means higher sales for companies and ventures. Businesses also lower costs and vulnerability, because they don’t have to store and move money, making them targets for criminals.
Finally, the adoption of digital payment means for the government:
- Increase the formality of the economy, due to the traceability of payments.
- Reduce bureaucracy, because people can pay for public services digitally or access subsidies or social bonds.
The digital means of payment were very well received by the beneficiaries of the Human Development Bond. In 2022, the number of electronic transfers for that grant was six times higher compared to 2019, the Central Bank claims.
Digital wallets can encourage a growth of 3 percentage points in the Gross Domestic Product (GDP) of countries, according to Armando Betancourt, head of associations for Google Pay Latam.
Connectivity issues
However, digital payment methods also have to face challenges in the country. One of them is the lack of infrastructure and connectivity, Seltzer acknowledges.
For example, on February 18, users of different cards reported problems when paying or withdrawing money from ATMs.
The inconvenience was due to a disconnection from the Telconet data center, a private banking service provider.
This note was originally published at 4:47 p.m. on February 28, 2023. It was updated on March 2, at 10:47 a.m. with Produbanco’s announcement about Apple Pay.
