Kakao Pay, a South Korean online payments company, has expanded its partnership with Japan-based PayPay to enable users of the latter platform to make offline purchases at more than two million merchants across Korea.

Kakao Pay and PayPay’s Collaboration

On September 25, 2025, Kakao Pay announced that its network had been integrated with the Japanese payment service PayPay, allowing Japanese travelers to enjoy a seamless cashless shopping experience in Korea, similar to what they are accustomed to back home.

As PayPay’s first expansion beyond Japan, this move places the company as one of the major players in the country’s non-cash payment sector with over 70 million registered users. With China being its largest market, Japan stands out as a significant tourist destination for Korea, attracting approximately 1.92 million visitors between January and July 2025.

The joint effort involved Kakao Pay, PayPay, and Alipay+. This collaboration builds on Kakao Pay’s previous expansion in November 2024, when it enabled Korean tourists to use their service during offline transactions in Japan via the local PayPay network.

Kakao Pay is unique among its peers for linking foreign payment networks with offline stores in Korea. Prior to this announcement, the company had already connected Vietnam’s ZaloPay, Pakistan’s NayaPay, and Uzbekistan’s Humo to Korean merchants.

In another development on September 22, 2025, Kakao Pay introduced NFC payments for its customers in the US, Europe, and Oceania, enhancing cross-border payment options for overseas users.

Kakao Pay representatives highlighted that this partnership enhances travel convenience by allowing individuals to use their home payment services abroad. This initiative signifies the company’s ongoing commitment to improving cross-border benefits and capabilities for travelers between Korea and Japan.