The two companies aim to enable Korean travellers to Japan to make purchases via their systems.
The move comes after the Korean government revised related regulations to enable local mobile payment services to operate overseas.
Users will be able to see how much they are paying in Korean currency when they make payments in foreign currency. This compares to overseas credit card purchases, for which it takes time for users to check their payments in Korean currency.
In addition, Kakao Pay plans to make its service available in one or two more countries in 2019.
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