PNG transparent textures as sticker

I would like to apply a PNG with transparent areas over a red surface and get the same result as I was adding a sticker on a red surface or as I was adding that PNG over a layer on Photoshop. The transparent areas of the PNG should let me see the red color from the bottom layer as the formula

(PNG.color * PNG.alpha) + (Red * (1.0 - PNG.alpha))

How can I do that?

Have you considered to use decals for this scenario? Check out the following official example to see them in action: three.js webgl - decal splatter