Kakao Pay was originally integrated with Kakao Talk, a social media and communications app popular in South Korea. Since its inception, Kakao Pay has grown into its own payment solution, with an online bank and associated debit card. Experts estimate that 3 in every 4 South Koreans use Kakao Pay.

Kakao Pay is a digital financing platform that allows users to pay for goods online and in-store, and to transfer money between users. Users link their app (and its associated mobile number) to a bank account, and can then make purchases by scanning a QR code or tapping their device to the electronic reader at the point of sale.

Kakao Pay Network is a peer-to-peer payment platform that enables merchants to accept cryptocurrency payments from customers in real time, without having to hold any assets themselves.

Kakao Pay works by sending a unique transaction ID to each customer, who then sends their payment directly to the merchant. The transaction ID links the transaction between customer and merchant, but does not include any sensitive data about either party. This makes it easy for both parties to remain anonymous while still being able to use the Kakao Pay Network. 

The Kakao Pay Network charges an interchange fee of 1%, which is paid by merchants who accept Kakao Pay payments through the platform.