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Global
payment processor Worldpay recently
shared the first research of its kind in the industry.
Released
in collaboration with GlobalData, a leading provider of data analytics, the
research titled “Trading Up: The Current Preferences of Traders and
Investors” unveils the correlation between payment behaviors, demographics,
and trading affinities of 10,000+ traders and investors in Europe, Latin
America (LATAM), the Middle East, Asia Pacific (APAC), and North America.
Access
the full report here for
a deeper understanding of how payment attitudes, choices and behaviors differ
across geographies to help you localize your customer experience (CX).
Leveraging
the report data, this article looks at regional payment preferences for
deposits and withdrawals and how these differ across geographies.
Deposits:
preference versus practice
When
it comes to depositing into online trading platforms, preferences vary by
region. In Europe, 38% of traders choose bank transfers as their deposit
method, slightly higher than the global average of 36%. North America (44%) and
APAC (40%) see a higher inclination towards bank transfers. In contrast, the
Middle East lags at just 18%.
Among
the five regions, credit cards are most popular for deposits in APAC, with 30%
of traders and investors opting for this when funding their accounts, followed
by the Middle East (24%).Nearly
one in four North Americans opt for credit cards to pay into their online trading
platform.
Debit
cards, on the other hand, are the go-to option for 16% of consumers in North
America – a similar level to LATAM.APAC
shows the least interest in debit cards (11%), while they’re more popular in Europe
(21%) and the Middle East (24%).
Digital
wallets are widely used across all regions, with the Middle East (26%) and
LATAM (22%) leading the way, followed by Europe (17%).
Age
also plays an interesting role in payment preferences. Investors aged 65+ overwhelmingly
favor bank transfers (61%), while younger investors (25-55) have a stronger
tendency towards faster methods like cards and digital wallets. Seniors typically
trade stocks, while the 18-25 age group is keener on lower-cost instruments
like Forex, ETFs, and cryptocurrencies.
Payouts:
preference versus practice
While
bank transfers and payment cards dominate deposit methods, payout preferences
reveal some intriguing regional differences.
In
North America, over half choose to receive payouts via bank transfer, but 17%
would rather receive funds to a card (compared to 14% currently). Notably,
North America has the highest interest in crypto payouts (13%), though only 7%
currently receive them.
More
traders and investors are paid out in cryptocurrency in the Middle East than in
any other region surveyed (15%). While the region displays the lowest interest
for bank transfers (31%), and a high usage rate for digital wallets (20%).
Prepaid
credit cards hold varying market shares regionally: most widely adopted in
Europe (13%) and the Middle East (12%), moderately used in APAC and North
America (9% each), and least prevalent in LATAM (5%).
Crypto
payments are increasingly gaining traction across all five regions. In Europe,
a growing number of consumers opt for receiving payments in crypto (7%), and digital
wallets are also on the rise with 16% favoring this withdrawal option.
Despite
regional differences, Worldpay’s research found one constant across the world:
traders and investors value security, simplicity and speed most when receiving payment
from online platforms.
Final
considerations
Zooming
in on the report data, distinct patterns emerge as we navigate the deposit and
withdrawal options available to traders and investors in each region.
Understanding these patterns is crucial to online platforms looking to expand
in these geos, in order to offer what the local consumer wants.
To learn more about Worldpay’s tailored payment
solutions and how they can help your business grow, contact the
team.