China digital currency: e-CNY wallet borrows Alipay and WeChat Pay’s electronic red packet feature to woo users
- The e-CNY app’s latest update allows users to send digital yuan-filled red packets, known as hongbao in mainland China, to each other
- While the e-CNY app has been made available for public download for about a year, it continues to be an uphill battle to convince consumers to use it
The official wallet app of China’s digital currency has launched a red packet feature, a function made popular over the years by the country’s dominant payments app Alipay and WeChat Pay, in a fresh move to lure new users.
As electronic payments become more prevalent in the country, sending small amounts of gift money online has become a social phenomenon, thanks to promotions by WeChat Pay from Tencent Holdings and Alipay from Ant Group, an affiliate of South China Morning Post owner Alibaba Group Holding.
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Festive Chinese red packets are more than just a tradition
While the e-CNY app has been made available for download by the general public since January, it continues to be an uphill battle to convince Chinese consumers to use the country’s digital currency.
Officials from the People’s Bank of China have repeatedly argued that the digital yuan is designed to replace “notes and coins”, not payments services such as Alipay and WeChat Pay.
But as far as the general public are concerned, e-CNY, as well as payments functions included in apps offered by tech companies and traditional banks, are viewed as just other forms of mobile payments.
Moreover, with the digital currency still under trial and having no timetable for a full launch, the e-CNY app is currently usable only in some two dozen designated cities and regions, such as Beijing and Shenzhen.