It is a tradition for the people of China to distribute red envelopes containing money to family. These red envelopes or “hong pao” are part of an old tradition. These envelopes are for children and the menial workers. These envelop help receivers to celebrate the Chinese New Year. We are getting more dependent on digital transactions. More Chinese nationals prefer to use digital modes of sending money.
WeChat announced people did over 46 billion red envelopes during Chinese New Year
In a recent report, WeChat informed about the number of transactions via the app. People sent 46 Billion electronic red envelopes this Chinese New Year. These transactions took place between January 27th and February 1st, 2017. This is approximately 43 percent more transactions in comparison to last year. The numbers are getting better almost every year. WeChat has around 800 million users. Only on January 27th, WeChat noticed 14 billion red envelopes changing hands. The transfer of the remaining red envelopes took place on the rest of the days.
It has a lot of benefits
Tencent that owns WeChat did not reveal the actual amount of the red envelopes. But you can imagine how much changed hands via app during the Chinese New Year. There are a lot of benefits in using the digital mode of transferring money. We have listed a few of them below:
- It saves the expenses of Red Envelopes or any other mode of transporting money.
- It is quick and risk-free.
- You will save time.
Almost every country is shifting to the digital economy. A lot of them have stopped using the paper money. Take the example of Sweden, Norway, and Denmark among many others. The number of digital transactions has increased to an unimaginable extent. From the last few months, India is also shifting to the cashless economy. The process got faster especially after demonetization.
The cashless economy not only saves a lot of time and efforts for the sender and receiver. It also makes it easy for the government to track the flow of the currency in the market. It makes it easier to collect direct and indirect taxes and put a hold on unlawful activities.
Good for China
China is the fastest-growing electronics market in the world. Most of the smartphones companies make phones in China. Then they move ahead to other parts of the world. The Chinese companies provide good options for the users at an affordable price. This is why China has been able to shift to mobile payments options. It happened in China faster in comparison to other Asian markets.
Chinese tech-savvy givers have kept traditional values alive while using technology. 43 billion transactions and that too only via WeChat is incredible. It shows how deep the digital economy has penetrated in the Chinese market. In a way, it is good because electronics manufacturing is one of the biggest contributors to the Chinese economy.