With an estimated 1.5 million Australians set to celebrate the 15-day Lunar New Year festival, the exchange of traditional hongbao, or red packets, is taking on a new form in today’s digital age.
A cherished custom, the gifting of red packets to family and friends is an important act of generosity symbolising good fortune for the year ahead, however, digital red envelopes and gift cards have become increasingly popular, offering a convenient and modern twist on this centuries-old tradition.
“As we welcome the Year of the Snake, we’re seeing a fusion of tradition and digital innovation as Australians embrace digital gifting this Lunar New Year,” BHN head of APAC region, Peter Malycon, says.
Indeed, branded payments provider Blackhawk Network (BHN) expects to see an uptick in gift cards exchanged. A report on the Australian gift card landscape found that use of gift cards during festival and celebration periods has grown from $216 million in 2019 to $800 million in 2023 and is forecasted to reach more than $1 billion in 2025.
The rise of digital gifting reflects broader trends as more aspects of life become digital and environmentally conscious. Digital gift cards have seen significant growth, especially among younger generations.
BHN research shows that younger shoppers, Gen Z and Millennials are twice as likely to share and store gift cards via email (63 per cent), digital wallet (41 per cent) or text (22 per cent).
To celebrate the occasion, BHN has partnered with Visa to launch a new Lunar New Year gift card range.
“BHN’s Lunar New Year gift card range allows Australians to share prosperity and joy with ease, whether sending a gift to loved ones across the world, the country or across the street. BHN gift cards ensure the heart of the celebrations remains unchanged: spreading good fortune, joy and meaningful connections,” adds Malycon.
