On Tuesday afternoon around 4 p.m, blurry photos started appearing in WeChat โ€œMoments,โ€ or the newsfeed feature of the social media platform. Clicking on a blurry photo revealed a small piece of the original photograph and gave users an ultimatum: send the photo owner a โ€œred envelopeโ€ (็บขๅŒ…) filled with a random amount of money using WeChatโ€™s online payment system and see the original photo, or refuse and the photo remains blurry.

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Screenshots from Tuesdayโ€™s โ€œred envelopeโ€ photo campaign. To see the original photograph, users must send a random amount of money to the photo owner in a โ€œred envelope.โ€

The campaign was shut down about four hours later. According to Tencentโ€™s tech news platform, yesterdayโ€™s photo campaign was just a test.

โ€œBecause our beta test met our expectations, we shut down the campaign. If youโ€™re interested in playing the red envelope photo campaign again, weโ€™ll have another one on Chinese New Yearโ€™s Eve,โ€ stated Tencent, the tech giant that owns WeChat.

Digital โ€œred envelopesโ€, sometimes known as โ€œlucky money,โ€ are a feature that allows users to send and receive money through online payment systems including WeChat and Alipay, Alibabaโ€™s equivalent. Traditionally, red envelopes are used in China to send money as a gift, especially around Chinese New Year.

The use of โ€œred envelopesโ€ around Chinese New Year in marketing campaigns is not new. In 2015, Tencent launched a โ€œred envelopeโ€ campaign during the Spring Festival Gala, a popular show broadcasted every year by CCTV (China Central Television) on Chinese New Yearโ€™s Eve. Lucky users who used WeChatโ€™s Shake feature at certain moments during the show received โ€œred envelopesโ€ with random amounts of money or e-coupons. That same year, Alipay gave away 600 million RMB (around $91 million USD) worth of โ€œlucky moneyโ€ in cash and  e-coupons to its users.

The โ€œred envelopeโ€ has been a point of contention between the two tech giants, who have both tried to block their users from using their competitorsโ€™ payment system. โ€œRed envelopeโ€ marketing campaigns like the one launched by Tencent yesterday are away to funnel more users into their respective payment systems, as well as create a buzz.

โ€œThis campaign looks a little like the Japanese โ€˜lucky bagโ€™. You pay money for something you donโ€™t know,โ€ says Alexis Bonhomme, referring to fukubukuro, a Japanese New Year custom. Mr. Bonhomme, who used to work for Groupon Tencent China, is a general manager at Curiosity China, a digital and tech company focusing on social CRM for international brands and agencies.

โ€œYou have 650 million active users on WeChat. Imagine that 80% of them use Wechat payment,โ€ says Mr. Bonhomme. โ€œItโ€™s a key asset for Tencent, especially when it goes to fight Alipay.โ€

According to Tencentโ€™s tech news site, the โ€œred envelopeโ€ photo campaign launching on Chinese New Yearโ€™s Eve will be even more fun and interactive. The tech giant recommends that users upgrade to the latest version of WeChat so that they didnโ€™t โ€œmiss out on several hundred million RMB.โ€

As Chinese New Year approaches, it will be interesting to see how other tech giants like Alibaba respond and launch their own campaigns. This yearโ€™s Chinese New Year โ€œred envelopeโ€ wars have officially begun.

Image credit: WeChat, Shutterstock

Eva Xiao is a tech reporter based in Shanghai. Contact her at eva.xiao@ka.550650.xyz or evawxiao (wechat & twitter).

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