SoftBank-backed PayPay is targeting a valuation of up to $13.4 billion in a planned US initial public offering, moving ahead despite volatile global markets. The listing could become one of the largest US IPOs by a Japanese company in recent years.
According to Reuters, PayPay and its backers plan to sell nearly 55 million American depositary shares at a price range of $17 to $20 per share. At the top end of that range, the offering could raise around $1.1 billion.
Delayed due to geopolitical tensions
Some companies have delayed their listing plans due to geopolitical tensions and uncertainty. As reported by Reuters, PayPay’s IPO was initially expected to begin earlier but was postponed after global markets reacted to escalating conflict in the Middle East.
Market analysts say a successful PayPay debut could help restore confidence in the IPO market. IPOX CEO Josef Schuster told Reuters that investor appetite remains strong for fintech firms operating mainly in their domestic markets, especially those seen as less exposed to geopolitical risks or rapid AI disruption.
Founded in 2018 as a joint venture between SoftBank Group and Yahoo Japan, PayPay entered the market by waiving transaction fees for small and medium-sized merchants for up to three years.
The strategy helped the company grow quickly as Japan pushed toward cashless payments. The company has used cashback programs and promotions to attract users. By the end of 2025, PayPay reported around 72 million registered users, making it one of Japan’s largest digital wallet platforms.
The offering also comes as SoftBank increases its investments in artificial intelligence, including its backing of OpenAI. Analysts view the PayPay listing as part of a broader strategy to strengthen SoftBank’s capital position while expanding its exposure to growth sectors.
According to Reuters, potential buyers include a subsidiary of the Qatar Investment Authority, an arm of Visa, and the Abu Dhabi Investment Authority. Together, they may purchase up to $220 million worth of shares in the offering.
PayPay plans to list on the Nasdaq under the ticker symbol “PAYP.” Goldman Sachs, J.P. Morgan, Mizuho, and Morgan Stanley are serving as joint book-running managers for the IPO.
