China’s international tourism market worth $258 billion
Yandex (YNDX) has integrated Tencent’s (TCEHY) WeChat Pay into its Yandex.Checkout platform. Businesses use Yandex.Checkout to provide their customers with a variety of payment options to make completing purchases easy.
The integration of WeChat Pay is expected to benefit Russian merchants catering to Chinese tourists visiting the country. China is the world’s largest source of international tourists, with Chinese travelers spending $258 billion on international tourism in 2017, according to the United Nations World Tourism Organization.
Providing a familiar payment option
According to Yandex, Russia receives more than 1.0 million Chinese tourists annually.
WeChat Pay is one of the two leading mobile payment services in China. The other is Alibaba’s (BABA) Alipay. WeChat Pay’s integration with Yandex.Checkout will let Russian merchants provide their Chinese customers with a familiar payment option. Tencent and Alibaba have been partnering with overseas businesses to adopt their respective mobile payment services when selling to international Chinese travelers.
Yandex’s revenue rose 39%
The WeChat Pay integration opens a door for Yandex to tap into China’s lucrative international tourism market. Yandex, whose main business is providing online advertising services, grew its revenue 39% YoY (year-over-year) to $496.6 million in the third quarter. Facebook (FB), Alphabet (GOOGL), and Baidu (BIDU) grew their third-quarter revenues 33%, 27%, and 21% YoY, respectively.
Yandex is working to diversify beyond advertising, and Yandex.Checkout is one of its diversification vehicles.