The Lunar New Year, also known as Chinese New Year, is more than just a cultural celebration. It’s a massive driver of travel, consumer spending and economic activity across Asia, making it one of the busiest times on the payments calendar. With billions of transactions processed over a short period, this season highlights the critical need for robust payment systems, especially in markets like China.
The world’s biggest migration fuels spending spree
During Lunar New Year, millions of people travel to reconnect with family and friends, creating the largest annual migration event globally. As noted by the World Economic Forum “in 2024, China saw 474 million domestic trips during the eight-day festival, up 34% from the previous year and even 19% higher than pre-pandemic levels in 2019.” These trips translate into significant spending on transportation, accommodation and festivities.
Consumer spending also skyrockets during this time. In 2024, domestic tourism spending in China hit 632.7 billion yuan (about $88 billion), a 47% increase compared to 2023. This surge is fueled by a mix of travel costs, traditional gift-giving and celebratory activities. For issuers, this means handling an unprecedented wave of transactions, testing their systems’ capacity and resilience.
Why the Lunar New Year is a payments powerhouse
The concentration of spending during the Lunar New Year creates a unique challenge for issuers. Beyond its cultural importance, the season represents a critical economic opportunity. Businesses across industries, from ecommerce to luxury goods, report significant revenue spikes. However, the sudden influx of transactions also exposes weak links in payment systems, with potential delays, declined transactions and increased security risks.
Moreover, traditions like gifting red envelopes (cash gifts) influence liquidity patterns, adding another layer of complexity for financial institutions. Ensuring smooth payment processing during this period isn’t just a nicety, it’s essential for maintaining consumer trust and supporting economic growth.
The role of issuer processors in handling the surge
During peak spending seasons like the Lunar New Year, issuers must rely on processors capable of managing massive transaction volumes. Robust issuer processors ensure payments are handled securely and in real-time, no matter the demand. Without this infrastructure, issuers risk service disruptions, lost revenue and reputational damage.
Paymentology is primed to meet these challenges with its advanced infrastructure and expertise in high-volume transaction management. Our platform is designed to process millions of transactions, even during busy periods like Lunar New Year. Additionally, Paymentology operates Stand-in Processing (STIP), a critical feature that ensures transactions are authorised even if a bank’s primary systems experience downtime. This capability guarantees uninterrupted service and builds customer trust, in addition to enabling issuers to deliver a consistently reliable payment experience, no matter the surge in demand.
For issuers, partnering with a processor like Paymentology isn’t just about managing volume, it’s about ensuring resilience and scalability, key factors for success during high-pressure periods.
To discover more about how seasonal events fuel massive spending, check out our article Singles’ Day: The E-Commerce Explosion in APAC.
About Paymentology
Paymentology is the leading next-generation issuer processor, empowering fintechs, digital banks and retail banks to effortlessly launch and manage innovative payment solutions on a global scale. The company drives greater customer choice and value through easy-to-use, integrated platforms and services that help clients to disrupt the status quo, accelerate time to market, and achieve growth.
With a superior multi-cloud platform offering a vast global footprint, and enhanced real-time data, Paymentology distinguishes itself as a leader in the payments industry. Its team of payments experts, with deep local market knowledge, operates across 50+ countries and 14 time zones, providing 24/7 support. Paymentology is deeply committed to expanding financial inclusion globally, changing lives and positively impacting the communities in which it operates.
