uploads///

Yandex Seeks a Piece of the Chinese Tourism Market

By

Nov. 22 2018, Updated 9:00 a.m. ET

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.

Article continues below advertisement

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.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.