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      Economy

      WeChat, Alipay announce end of 'red envelope war' before Chinese New Year

      1
      2017-01-17 15:59People's Daily Online Editor: Li Yan ECNS App Download

      President of Weixin Group Zhang Xiaolong confirmed that no WeChat marketing campaign involving virtual "red envelopes" will be conducted during the 2017 Chinese New Year, saying the absence of such a campaign will allow people to spend more time with their families.

      The WeChat red envelope program, a method of sending virtual cash gifts, was launched during the 2014 Chinese New Year, the first of several market competitors to roll out such a service. The program soon gained popularity, making digital cash-giving a popular trend during the festival. In order to win a larger share of the mobile payment market, WeChat and Alipay even started a high-profile financial battle. Currently, the number of active WeChat users has surpassed 800 million, while Alipay has 450 million formally registered users.

      However, both companies have proclaimed the end of their red envelope battle, beginning in 2017.

      "People are supposed to spend more time with their families during Spring Festival, rather than playing with their mobile phones," said Chen Guanhua, chief of Alipay's red envelope project.

      However, the end of the red envelope war does not mean the end of program upgrades, since the red envelope function is still an effective way to increase customer loyalty. Now, both companies have released augmented reality (AR) red envelope services. To collect an AR red envelope, users have to reach a specified offline location and scan a designated object. This will make the experience more fun and novel, the companies hope.

      Insiders believe that in the wake of the red envelope war, WeChat and Alipay will be more innovative in their product design.

        

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