SINGAPORE: Digital red packets are giving the physical hongbao a fight for their money this Chinese New Year with banks in Singapore saying more customers are opting for electronic transfers because of convenience and the ability to gift in auspicious numbers.

Latest figures from local banks indicate a rise in e-gifting solutions, with some banks seeing customer adoption hitting a record high over the Chinese New Year period.

For example, DBS saw 30% more unique users of its QR gift cards compared to last year.

These physical cards come with QR codes printed on them, which recipients scan to receive a pre-loaded amount.

The bank’s customers also have the option of tapping the all-electronic eGift option, which sends funds and greeting via PayLah!

DBS said the total amount loaded in its QR gift cards is up 40% from last year over the festive period, with some S$5mil loaded onto the cards on the eve and first day of Chinese New Year in 2023.

This was a 55% jump in value compared to the same two days in 2021.

The bank added that the average amount per digital red packet also surged by more than 30% to about S$120 per transaction, which is over 1.5 times that of each average e-hongbao transaction in 2021.

Executive director of DBS’ consumer banking group Diane Chang said the ease of preparing and distributing red packets digitally has kept the trend of digital red packets resilient amid the lifting of Covid-19 restrictions.

She said: “Customers have shared that they appreciate the convenience and time savings that digital gifting brings since it does away with the hassle of having to queue for and pack new notes.”

Bank customers also prefer having e-hongbao on hand as a backup when they run out of traditional red packets, she added.

OCBC said the daily average use of its e-hongbao feature quadrupled on the first day of Chinese New Year.

The bank estimates at least 20% more e-hongbao will be sent during the 15 days of the Chinese New Year period in 2023 compared to the previous year.

At UOB, the total value sent via digital red packets over the eve and first day of Chinese New Year rose over 10% year-on-year, the bank said.

UOB head of group personal financial services Jacquelyn Tan added that customers are also seeing digital red packets as more eco-friendly compared to using new notes and traditional red packets.

“In addition to being the greener option to physical hongbao, bank customers can also easily gift auspicious amounts like S$8.88 and S$88 , and the ability to track their giftings means they do not have to worry about missing anyone out.

“Customers can also personalise their e-Hongbaos on our app with rabbit-themed backgrounds, as well as insert custom greetings,” she said.

 - ANN