Trading up: Understanding the new age investor in the UAE and beyond

New joint research from Worldpay reveals the latest payment preferences and drivers of choice of traders and investors

Worldpay has teamed up with data and analytics provider GlobalData to bring you the latest insights on the behaviors of today’s traders and investors. Supplied image

With the trading and investments industry set to grow to US$15.34 billion by 2030 at a CAGR of 6.4%**, online platforms could look to foster a mutual growth trajectory by focusing on what their customers need. How to do this? It’s simple - understand the constantly evolving trader preferences and stay-up-to date with the latest industry and payments news.

Worldpay, a leading global acquirer with 30+ years of experience in providing payment solutions to merchants, teamed up with data and analytics provider - GlobalData, to bring you the latest insights on the behaviors of today’s traders and investors. The new comprehensive research is based on a survey of over 10,000 consumers in 10 different countries. It uncovers global payment trends around taking, making, and managing payments that could help you optimize your customers’ journeys. The report also provides 10 deep dives (including one on the UAE) with specific country insights and expert advice.

New age investors: Who are they and what assets do they hold?

There is a relatively even spread of traders and investors across different age groups, but 25–34-year-olds are trading the most. The younger, digital-native consumers tend to be more comfortable online, embracing the convenience of modern-day trading. Just under 60% of all traders and investors surveyed use their phones to access their accounts. This suggests that optimizing your platform for mobile should be a priority.

While stocks and shares are the most commonly traded assets globally (84%), the UAE presents a different scenario. Respondents there tend to trade in a wider range of asset classes, with cryptocurrencies (59%) being the most popular. Forex (37%) is also favored and commodities (20%) are held by more investors in the UAE than any other country in the survey.

Payment preferences: Why is offering the right payment mix important?

There’s no one-word answer here: traders and investors have diverse preferences when it comes to the payment methods they use to deposit into their online accounts. Offering a mix that could cater to those differing needs is essential.

Diving further into the research findings, bank transfer is the most popular payment method globally, with 36% of investors preferring to pay this way. However, a different trend has emerged in the UAE. Digital wallets are the go-to payment tool in the country (26%), closely followed by debit and credit cards (both at 24%).

Not offering the right payment mix could also be costly for trading and investment platforms. The research found that a staggering 1 in 5 traders would switch platforms completely if their preferred payment method is unavailable, emphasizing the importance of catering to all needs. Similarly, a quarter of consumers would look elsewhere if their payment was declined indicating that high acceptance rates could be the key to customer retention.

Payout preferences: How do traders and investors want to receive payments?

The majority of traders and investors around the world received their most recent payment via bank transfer (49%), in line with a general global preference for that method. There is a slight disparity in the UAE here; despite 36% of traders preferring to receive their trade payments via bank transfer, only 31% most recently received a payment this way.

There is a broader spread in payout preferences among UAE traders. 1 in 5 are keen on being paid directly into their digital wallets – a higher than global average number. Additionally, 10% of respondents in the UAE prefer to receive crypto payments.

What do traders and investors value most?

When it comes to choosing their online trading or investment platform, consumers online have three key drivers on their minds:

1. A trusted brand
2. An easy-to-use digital platform and mobile app
3. Market-leading rates or low fees

And that’s not all.

Looking at the attributes influencing trader’s choices, the security of payment information is a number one consideration in all 10 countries surveyed and the highest in UAE (31%). Transparency and regular communication could help reassure your customers and instil confidence in your brand.

That is followed by the importance of speed and simplicity in the overall journey, highlighting the need for easy-to-understand features and completing transactions with minimal effort.

Both privacy and anonymity are also valued most by almost a fifth of traders in the UAE (17%) – a higher than the global average percentage. Tailoring your journey to fit this trend may lead to a better customer experience.

Looking to grow or expand into the UAE? Consider partnering with a payments provider that can help you offer the right mix of payment methods and the local expertise you need to optimize your customer journeys.

Want to access more insights? Download the full report here.

**Fortune Business Insights (2023) Online Trading Platform Market [Accessed: 02/09/2023].