Let A Study Enlighten You Before You Send Money To Ecuador
Interestingly enough, research done on Ecuadorian remittance recipients in 2003 revealed that most are females, have more money than the average citizen of the country, are better educated, and are older than the general population. The same study found that most people who sent money to Ecuador that year were living in Italy, Spain, or the United States, the latter of which had residents who sent the most money at a rate slightly higher than Spain's. At the time, the average Ecuadorian received remittances about eight times each year, and the country got about $1.4 billion in 2003.
Since that time, it has increased and then plummeted in recent years. For example, in 2008 the number of people who had to send money to Ecuador increased, as the year saw about $4 billion in transfers. However, the fourth quarter of 2008 had far fewer remittances than usual, at about $644 million compared to the previous year's $825 million. Despite the decline in remittances, if you need to send money to Ecuador, there are still plenty of people doing the same, and thus, plenty of services available.
It is of note to add that the study performed in 2003 found that less than half of the recipients of remittances had a bank account. This means that the traditional route of sending funds through a bank from one account to another would be impossible, and even using a money transfer service would require the recipient to pick up the cash at a specified location. Not only is this not always convenient or safe, but many services charge a fee for people to claim their money. Using a prepaid debit card could solve these issues, as cash is never sent to be picked up, and there are no fees for the recipient. Instead, you would simply mail a debit card to your relative, pay $5 to add funds up to $1000 USD, and allow them to either withdraw cash from an ATM or use it as a debit card at stores.
There are a few options available to send money to Ecuador, but clearly some are more convenient for all than others. If you know your relative has a bank account or does not mind paying a few dollars to collect their cash, you can just choose the option that you like most. However, if neither is true, and you want to pay as little as possible in fees on your end, you might choose to use a prepaid debit card when you send money to Ecuador.
Since that time, it has increased and then plummeted in recent years. For example, in 2008 the number of people who had to send money to Ecuador increased, as the year saw about $4 billion in transfers. However, the fourth quarter of 2008 had far fewer remittances than usual, at about $644 million compared to the previous year's $825 million. Despite the decline in remittances, if you need to send money to Ecuador, there are still plenty of people doing the same, and thus, plenty of services available.
It is of note to add that the study performed in 2003 found that less than half of the recipients of remittances had a bank account. This means that the traditional route of sending funds through a bank from one account to another would be impossible, and even using a money transfer service would require the recipient to pick up the cash at a specified location. Not only is this not always convenient or safe, but many services charge a fee for people to claim their money. Using a prepaid debit card could solve these issues, as cash is never sent to be picked up, and there are no fees for the recipient. Instead, you would simply mail a debit card to your relative, pay $5 to add funds up to $1000 USD, and allow them to either withdraw cash from an ATM or use it as a debit card at stores.
There are a few options available to send money to Ecuador, but clearly some are more convenient for all than others. If you know your relative has a bank account or does not mind paying a few dollars to collect their cash, you can just choose the option that you like most. However, if neither is true, and you want to pay as little as possible in fees on your end, you might choose to use a prepaid debit card when you send money to Ecuador.
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