Of course, China’s Internet giants have not been slow to capitalize on this trend, with Shenzhen-based Tencent last week launching their “New Year Red Envelope” app (应用程序), an add-on to its popular WeChat messaging service. The company’s over 600 million WeChat users can send each other lucky money, provided both the sender and receiver have signed up to the company’s in-app payment service.
“I am really happy that I can use a new and fashionable way to send my holiday greetings to my family and friends, especially for people who have kids but live far away from us.” said Mr. Cheng, a user of the service.
The service reportedly banked 18 million RMB ($2.9 million) worth of transfers (转账) in its first 24 hours, according to a report in the Beijing Youth Daily newspaper.
While Tencent’s rival Alibaba also has a similar service, called Hong Bao, which launched last year, WeChat’s app allows users to randomly distribute up to 200 yuan ($33) within a group of friends, adding a fun element of unpredictability to the process.
Some analysts believe that linking the payments to WeChat’s in-app payment service could be a game-changer, as it simplifies the process of paying for micro dealings, potentially making users more likely to make in-app purchases in the future.
“The tradition of giving red packets is a symbolic gesture,” said Steve Wang, Chief Economist, Reorient Group. “It’s a new way to get people more comfortable dealing with money online, to expand their user base. It combines the old and the new, and is a great example of the kind of creative idea that we’re seeing come out of China these days.”
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