Experts: escalating digital hongbao war unhealthy for industry
专家称数码红包之战不利行业健康

At the same time, industry insiders say though the on-going hongbao war is aimed at attracting users, overdoing it could risk losing them.

Industry experts say the Hongbao war is a major means to expand user bases in the sector's infancy stage.

We notice that many merchants and internet financial companies are beginning to move into giving out Hong Bao online. Since the payment is a way to introduce people to the service, there will be strong competition.

But analysts are warning of a lose-lose situation if the companies continue their endless wars on marketing and prices.They say the practice of banning competitors' services is not healthy for the new industry. The tit-for-tat moves will take a toll on user experience, and risk losing the heart of customers.

The endless wars of words and prices, as well as the on-going Red Envelope war could make consumers feel tired, or even unhappy. The internet develops very fast, and no one can keep users long. Those who offer the best user experience will attract users.

The experts also advise companies to focus on improving products and jointly create a favourable industry environment for mobile payments.