KakaoPay said on Tuesday it will launch its "sole proprietor loan refinancing" service to reduce the financial burden on small merchants and self-employed people.

The service strengthens non-face-to-face convenience, considering small merchants who find it difficult to visit banks or prepare documents due to running their businesses.

Users can check interest rates and loan limits with a few touches. KakaoPay said it applied its intuitive UI/UX, which received positive reviews in its existing refinancing service for individuals, to the characteristics of sole proprietors' unsecured business loans.

Six financial firms, including major banks in the primary financial sector, have joined the service. KakaoPay plans to expand the range of choices by bringing in more financial firms. It said it will use accumulated data based on more than 22 million MyData subscribers, the largest scale among domestic financial platforms, to present tailored financial terms.

It will also provide financial management functions after refinancing, including supporting credit improvements through MyData-based "credit score boosting" and helping users make use of the right to request an interest rate cut.

KakaoPay said, "We prepared this service to resolve the inconvenience that small business owners, who do not have enough time even to focus on running their businesses, experience at the threshold of finance." It added, "We will continue to expand inclusive financial services for sole proprietors based on unmatched technological capabilities and platform data to provide tangible value."