Huat’s up with e-hongbaos? Banks cash in on trend to roll out creative versions

SINGAPORE — Instead of receiving hongbaos during house visits this year, some people may get Disney characters Mickey and Minnie Mouse delivering an e-hongbao (electronic hongbao) to their mobile phone.

Amid Singapore’s push for a cashless society, banks here have launched new e-hongbaos this Chinese New Year to get more people to adopt the practice.

Using peer-to-peer funds transfer service PayNow, the e-hongbaos allow users to transfer money to a recipient using just his or her NRIC or phone number.

While some banks have reported a surge in the number of PayNow transactions during the festive periods, the e-hongbaos have received mixed reactions from customers.

To get more converts onboard, some banks are turning to cute cartoon characters and QR codes.  

Standard Chartered Bank has partnered with Hong Kong Disneyland for its new e-hongbaos this year and customers using its mobile app can send hongbao money along with new year greetings featuring Mickey and Minnie Mouse.

Mr Usman Khalid, executive director and head, deposits and payments, Standard Chartered Bank, said that the bank has seen a four-fold year-on-year increase in PayNow transactions since 2017.

“This service fits in nicely with the cashless lifestyle our customers are already adopting,” he added.  

DBS Bank is also launching a new e-hongbao, albeit with a traditional twist.

Users of DBS’ QR Ang Baos can scan the QR code embedded in a physical card and load the hongbao with money using the bank’s app.

Recipients of these e-hongbaos can instantly redeem the loaded value by scanning the QR code using mobile banking apps.

Citibank also launched a new e-hongbao feature in its app on Friday (Feb 1) to allow users to do fund transfers via PayNow.

DBS has also seen a rising trend in people using e-hongbaos. Mr Jeremy Soo, managing director and head of DBS Bank Singapore’s consumer banking group, said that the number of e-hongbaos sent via the bank’s app increased by six times from 2017 to 2018.

OCBC Bank also saw the number of transactions and total amount transacted via the bank’s Pay Anyone service increasing during Chinese New Year over the same period.

Ms Chea Rui Xuan, 20, is among a younger generation of Singaporeans who has embraced e-hongbaos. The student said she preferred e-hongbaos as cashing them is more convenient.

“A lot of us (peers my age) don’t even carry cash most of the time and e-hongbaos would be a very natural extension of that,” she said.

However, others like executive Loke Qi Wen, 30, are sticking with traditional hongbaos as he feels that giving one in person is a thoughtful and auspicious gesture.

“If we lose the physical angbao, we will lose the meaning of blessing others with well wishes,” he said.

Adding that e-hongbaos are “just a gimmick”, sales engineer Melody Mok said: “If my relatives meet up with me and transfer me a certain amount of money, the feeling is different from receiving a physical red packet.

“I don’t use e-hongbaos because I think the tradition is still there (with a physical hongbao).”