Yandex.Money is a Russian fintech company running services both for individuals and businesses for accepting and making payments. Its B2C-focused product is Yandex.Money e-wallet and bank card, and B2B-oriented service is Yandex.Checkout payment service provider. Yandex.Checkout supports around 20 online payment methods - bank cards, e-wallets, e-invoicing, contactless payments such as Apple Pay and Google Pay, etc. Other B2B-solutions include anti-fraud protection service, marketing lead generation business, installments, B2B payments, contactless payments, solutions for sales via social media and messengers and a variety of innovative driver payment options.
60M Yandex.Money e-wallets are registered as of November 2019, and Yandex.Checkout is utilized by more than 120 000 websites 2019 all over the world.
Currently, Yandex.Money is the joint venture of Russias leading search engine Yandex NASDAQ: YNDX, and Russias largest bank Sberbank. The company’s headquarters are in Moscow, Russia. It has branch offices in Saint Petersburg and Nizhny Novgorod. Ivan Glazachev is Yandex.Money Chief Executive Officer since 1 March 2017.
Yandex.Money was established by Russias leading search engine Yandex NASDAQ: YNDX and PayCash in 2002. Major players of e-commerce market started partnering with Yandex.Money: for example, in 2005 Skype Microsoft chose Yandex.Money e-wallet as a payment method for their clients in Russia. In 2007, Yandex bought the stake of PayCash as well as technology licensing and software.
Yandex.Money is developing as a B2C product aiming at providing the most comfortable solution to every payment operation - from paying bills and traffic fines to cashback for online-shopping and streaming donations. The development was rapid - instantaneous top-up of digital wallets, direct alliance with a bank account, mobile apps, card-to-card transfers - and led to widespread acceptance. Today e-wallets can be opened online from any place in the world with Russia and CIS countries remaining the top residencies. Users can top up their accounts from bank cards, through online-banking and more than 250K payment kiosks. According to Mediascope study 52.8 % of Russian online users pay with Yandex.Money which places the system at the third most popular payment method after Sberbank online solution top Russian bank and bank cards.
Since 2011 Yandex.Money has become a global service: citizens of foreign countries can open a Yandex.Money e-wallet. In 2012 Yandex.Money has acquired the status of non-banking credit organization and got the license of the Central Bank of the Russian Federation and started to issue its own bank cards. 2M cards and 19M virtual cards are emitted to the present day, multicurrency solution for 10 foreign currencies is introduced featuring cashback for all currencies. Users can pay with Yandex.Money around the globe including an opportunity to pay contactless.
In 2013, the company launched Yandex.Checkout - a payment service provider for online stores and other businesses that need payments on their online platforms. Merchants from all over the world can offer Russian and CIS consumers the online payment methods most popular among Russians and CIS-citizens just in one button "Pay with Yandex": bank cards, direct debit online banking, e-wallets, contactless and so on. The technology platform acts as a payment gateway and a payment service provider. Yandex.Checkout also provides an instantaneous installment service which gives merchants the opportunity to split checks while selling goods and services. Enterprises also have an opportunity to conduct operations with "B2B-payments" solution. Alongside with payment options Yandex.Checkout has a business-market with special offers and discounts for merchants and additionally can provide a number of services for entrepreneurship - anti-fraud solution, service for contextual advertising and other marketing tools.
2.1. Products and services B2C: Yandex.Money e-wallet, card and app
Currently, Yandex.Money is the most popular electronic payment service according to a 2019 survey by Mediascope for the fourth year in row, according to Mediascope 2017 and TNS 2016 reports. Yandex.Money is widely known in Russia: 52.8 % of Russian Internet users regularly pay with Yandex.Money.
By 2019 Yandex.Money e-wallet is used by over 60M individuals globally 2019. Yandex.Money e-wallet is the original B2C-product of the company, offering its clients safe, fast and reliable payments on the website and in the mobile app.
Customers can also use Yandex.Money cards as a form of payment: both plastic and virtual Mastercards are available for issuing. In 2015 Yandex.Money received Mastercard Principal Member status. By the 2019 Yandex.Money has issued more than 2M plastic cards and 19M virtual Mastercards.
Yandex.Money was among the first to bring its users Apple Pay in Russia, which is transforming mobile payments with an easy, secure and private way to pay in stores, apps and on the web. Online stores and other merchants, which accept payments via Yandex.Checkout, can also offer consumers fast and convenient contactless payment via Apple Pay and Google Pay. Also Google Pay, Garmin Pay and Samsung Pay are available for Yandex.Money’s users.
More than 5M users have downloaded the Yandex.Money mobile app 2018. Via the app, they can transfer funds via iMessage, pay bills - such as utilities, internet, mobile services - make loan payments, access their most frequent payments, and more. Yandex.Money mobile application Yandex.Fines for iOS implemented a new feature, which enables paying for traffic fines via Apple Pay.
In 2018, Yandex.Money partnered with American fintech Moven to integrate its APIs and embed them into the existing Yandex.Money platform to deliver a highly personalized smart banking experience to their customers.
In 2018-2019 Yandex.Money launched two investment services for individuals. The first one, Yammi, is a low cost, transparent, tech/digital-focused automated Wealth Management solution using Exchange Traded Funds ETFs, and a joint project of Yandex.Money and FinEx Group. The second platform was created in cooperation with BKS Broker for investing in shares of Russian and foreign companies, as well as in foreign currencies using stock exchange rates.
In 2019 Yandex.Money introduced multi-currency accounts and cards. Before Yandex.Money’s accounts were only in Russian rubles, and transactions abroad were made via conversion. Thus the service allowed individuals to keep money and pay in 10 foreign currencies: US dollars, euros, British pounds, Japanese yen, Chinese yuan, Swiss francs, Czech korunas, Polish zloty, Belarusian rubles, and Kazakhstani tenges. Yandex.Money was the first company in Russia to offer cashback for payments in all 10 currencies at once and frictionless auto-switch among them.
Yandex.Money accumulates digital and games content and retailers’ gift certificates on its own digital market platform. Using Yandex.Money e-wallet, gamers also can pay for Nintendo games and Sony Playstation codes, top up an account on Steam, Wargaming, Riot Games, buy codes for Apple iTunes and Xbox. Since 2011 Yandex.Money has been the official sales operator of the popular game publisher Electronic Arts. As well as codes for Activision Blizzard games, Yandex.Money also distributes Blizzard Entertainment and Sony Entertainment virtual cards, which provide users with a convenient payment option for Blizzard’s online games: World of Warcraft, Overwatch, Heroes of the Storm, Call of Duty, StarCraft, Hearthstone, and Diablo
2.2. Products and services B2B: Yandex.Checkout PSP
Yandex.Checkout is currently the leading service for accepting online payments in Russia, according to a 2019 survey by MARC. Yandex.Checkout allows individual entrepreneurs, businesses and nonprofit organizations to receive payments in many ways: from bank cards, through Yandex.Money and other e-wallets, through mobile applications and Internet banking of Sberbank, Alfa-Bank and Tinkoff Bank, using contactless technologies Apple Pay, Google Pay and WeChat Pay, as well as cash through 250K payment acceptance points in Russia and other countries. As a term of an additional agreement, it is possible to receive payments from cards of American Express, JCB and Diners Club cards.
Currently more than 120K websites across the globe utilize Yandex.Checkout. 37.6 % of Russian online platforms and stores accepted payments via Yandex.Checkout in late 2018. International companies and brands partnering with Yandex.Checkout include AliExpress Alibaba, ASOS, JD.com, Electronic Arts, Blizzard, Nintendo, Sony PlayStation, Skype and Xbox Live, Burger King, Nespresso Nestle Group, PepsiCo, BlaBlaCar, BMW Group, Renault, Yves Rocher, etc.
In 2018 Yandex.Checkout launched fast B2B-payments in partnership with Sberbank, the largest bank in Russia. The service makes it easier to receive payments from the legal entities and speed up their processing from 1-3 days to 1-3 minutes. Among clients utilizing B2B-payments options are companies from travel industry and telecom providers, ie. Ozon Travel.
In 2019 Yandex.Checkout started expansion of its payment gateway business to Korea offering consulting package for entering Russian and CIS market - payment solutions, AI-based marketing tools and localization suggestions. Yandex.Money already has existing partnerships with Korean cosmetics specialized companies such as Style Korean, RoseRoseShop and Viana and supported them with the payment system integration. With a support of Yandex.Money, RoseRoseShop has increased its retail buyers up to 20 %.
Yandex.Checkout was localized for Chinese market with the brand of Yandex支付. Engagement with Chinese companies started in 2014 and was led by AliExpress, a leading Chinese e-commerce platform, and AliPay in 2016. Later, in 2018 WeChat partnered with Yandex.Checkout and now companies operating online that are seeking to enter Chinese-oriented market can also accept payments via WeChat Pay.
Yandex.Checkout received the Emerging Payment Award in 2017 and Best PSP Award in 2019 and Finaward trophies for cybersecurity solutions and for B2B-payments.
2.3. Products and services Big data, AI & ML-based services
In 2018 Yandex.Checkout introduced a multipurpose fraud prevention product based on AI and ML. It detects scams and malware, mitigates abnormal activities and finds new fraudulent patterns. Initially, it was used as an internal system to protect millions of Yandex.Money’s users from account takeovers. The same system was then extended to reduce Yandex.Checkout’s merchants financial risks and maintaining payment conversion.
Yandex.Checkout’s marketing platform with personalized offers is also based on big data and ML. In 2017 the service launched a new technological platform that could help companies accept online payments faster than before, use the special offer system to increase sales, and receive key business analytics. The offer system became a new tool to help online stores and other services attract customers and increase sales. Companies need to upload an offer to Yandex.Checkout - for example, a gift for a purchase or a discount on goods - and it will be shown to the user once they pay via Yandex.Checkout at any other online marketplace. Yandex.Checkout sorts offers to users depending on their personal preferences, using technology based on ML.