Battle to send out virtual red envelopes warms up

China's Internet companies are scrambling to send out cash-filled virtual red envelopes for Spring Festival.

Envelopes worth several hundred million yuan will be handed out by Ant Financial Services Group, the Internet finance arm of Alibaba Group Holding, through its Alipay Wallet apps on Feb 7, the eve of the festival.

Archrivals Baidu and Tencent Holdings Ltd are stepping up their efforts in the campaign, with the aim of expanding their presence in the mobile payments market.