New Year’s celebrations lead to more mobile spending throughout China
The Lunar New Year has come and gone and mobile commerce surged during the Chinese holiday. During the Lunar New Year, those living in China send one another traditional red packets, called hong bao. These red envelopes typically contain money and is something that many people look forward to receiving every year. With the emergency of mobile technology, the way people give hong bao to one another has changed, which has been good news for mobile commerce in general.
Payment platforms enable consumers to send and receive hong bao efficiently
Both WeChat and Alipay enable people to deliver hong bao cards to one another. Both platforms have become very popular in China, as they allow people to make purchases and send money to others. These two platforms have allowed mobile shopping to thrive in China and have given their owners, Tencent and Alibaba respectively, a competitive edge over those that would try to enter into China’s mobile commerce market. During the Lunar New Year, the platforms proved to be particularly effective in serving mobile consumers.
The number of hong bao being send through mobile services continues to rise ad mobile payments become more common
According to Tencent, more than 8 billion hong bao cards were exchanged during the Lunar New Year. This is eight times more than the number of hong bao that were sent last year. This is actually a trend that has been seen over the past few years. More consumers are becoming mobile-centric, which is making them more comfortable with the concept of mobile payments and how their devices can be used to connect with one another.
China continues to be an attractive mobile commerce market for many
This year, the hong bao may highlight the growing importance of mobile payments systems, as well as their value. During the third quarter of 2015, China’s mobile commerce space was valued at approximately $368 million. The country is considered the fastest growing mobile payments market in the world, attracting the attention of other companies that are in this sector.
The 2015 holiday gifts were exchanged digitally, and quite frequently over smartphones.
The 2015 Lunar New Year used mobile payments more than any previous year, as instant messaging platforms, such as WeChat from Tencent, drew a great deal of attention and made it easier for people to exchange cash gifts.
WeChat and the China Central Television Spring Festival gala were broadcast on Lunar New Year’s Eve.
During the show, mobile payments were featured, as audience members shook their smartphones throughout the broadcast in order to increase their chances of receiving red envelopes that contained cash gifts from WeChat. According to WeChat’s own figures, the show recorded 11 billion smartphone shakes. The high point was at 10:34pm, at which time the company had been recording an average of 810 million shakes every minute. During that time, there were 120 million red envelopes being distributed.
These mobile payments were issued to the people who took part in the WeChat red envelope promotion.
The service also made it possible for smartphone users to send the smartphone payments to friends and family members who were registered on their contact list through WeChat. According to the company, there were over 1 billion red envelopes that were sent out to recipients on Lunar New Year’s eve. This was about 200 times the number that had been recorded for the same day in 2014.
While many were very happy with the number of exchanges that they received and were shocked at how many different red envelopes were sent in their direction, there were some that voiced concerns over this use of digital payments over mobile. Some observers expressed that they were afraid that younger users of the mobile app might become so taken with the sending and receiving of the red envelopes over the messenger program that they will spend more time paying attention to their devices than they will with their actual families, in person.
This concern was not without foundation, as some people did admit that over the two day Lunar New Year holiday, they barely stopped checking their devices, as it was a lot of fun to be able to send and receive the red envelopes. Most of them were sent in tiny amounts, but people enjoyed the opportunity to receive them, and to send other mobile payments to their friends, family, and coworkers.
