This character is a Other Symbol and is commonly used, that is, in no specific script.
The glyph is not a composition. Its East Asian Width is wide. In bidirectional text it acts as Other Neutral. When changing direction it is not mirrored. U+1F9E7 offers a line break opportunity at its position, except in some numeric contexts.
The CLDR project calls this character “red envelope” for use in screen reading software. It assigns these additional labels, e.g. for search in emoji pickers: gift, good luck, hóngbāo, lai see, money.
This character is designated as an emoji. It will be rendered as colorful emoji on conforming platforms. To reduce it to a monochrome character, you can combine it with Variation Selector-15: 🧧︎ See the Emojipedia for more details on this character’s emoji properties.
The Wikipedia has the following information about this codepoint:
A red envelope, red packet, hongbao or ang pau (traditional Chinese: 紅包; simplified Chinese: 红包; pinyin: hóngbāo; Pe̍h-ōe-jī: âng-pau) is a gift of money given during holidays or for special occasions such as weddings, graduations, and birthdays. It originated in China before spreading across parts of Southeast Asia and other countries with sizable ethnic Chinese populations.
In the mid-2010s, a digital equivalent to the practice emerged within messaging apps with mobile wallet systems localized for the Chinese New Year, particularity WeChat.