The e-CNY app enables users to send each other a digital red packet filled with Yuan. The process is known as hongbao in mainland China. Though, the e-CNY app has been available for download for the public for around a year, users still need help to use it.
China’s official digital currency wallet app has established a new feature, the red packet. A component made famous over the years by the nation’s two most popular payment apps, Alipay and WeChat.
The latest e-CNYs update enables users to send each other digital Yuan-filled red packets known as hongbao in mainland China. The idea came when the Chinese traditionally gave out red envelopes filled with cash to family and friends as a sign of good wishes. As electronic payments have become more prevalent in the country, sending small cash amounts has become a social phenomenon.
On the other hand, the e-CNY app has been available for download by the general public since January.
The people’s bank of China has repeatedly claimed that the digital Yuan is not intended to replace Alipay and WeChat pay but for ‘notes and coins’.
Besides, the general public is more concerned about e-CNY. The payment features built into apps provided by tech companies and conventional banks are just another type of online payment.
Furthermore, the e-CNY app is only currently usable in about two cities and regions, including Beijing and Shenzhen. Moreover, digital currency is still in the trial phase and has no scheduled date for a full launch.
The capitals of Guangdong, Jiangsu, Hebei and Sichuan provinces, as well as Kunming. The capital of Yunnan province, and Jinan, the capital of Shandong province, all became digital Yuan, accepting cities last week.
If we do the analysis, from the start of e-CNY in December 2019 till the end of August, total transactions, including Yuan, rose 14% to reach 100 billion Yuan.
On the other hand, Alipay and WeChat accept the digital Yuan, allowing them to leverage these apps’ much larger user base. However, digital Yuan red packets can share through Alipay, WeChat and QQ, another famous social platform under Tencent.
According to Tencent’s financial report, Alipay had more than 1 billion annual users in the 12 months till August 17, 2020. In contrast, WeChat and its sister app QQ had 1.3 billion and 574 monthly active users.