SoftBank-backed PayPay is targeting a valuation of up to $13.4 billion in its U.S. initial public offering, pressing ahead despite volatile markets. This move could represent one of the largest U.S. listings by a Japanese firm.
The Japanese payments app and its backer plan to sell nearly 55 million American depositary shares priced between $17 and $20 apiece, aiming to raise approximately $1.1 billion. This offering proceeds despite a shaky start to the year for the U.S. IPO market, marked by significant market swings that have prompted other companies to delay their flotation plans.
Analysts suggest a strong PayPay debut could help lift investor confidence amidst the turbulence. The company's business is heavily integrated into Japan's payments ecosystem, and while AI risks are present, investors have recently shown a willingness to push on valuations.
Founded in 2018 by SoftBank and Yahoo Japan, PayPay has been instrumental in Japan's drive towards cashless payments. It achieved this by waiving transaction fees for small and medium-sized merchants initially and employing rebates and incentives to encourage consumer adoption of its mobile app.
By the end of 2025, PayPay boasted approximately 72 million registered users, establishing itself as one of the country's most popular digital wallets. The offering comes as SoftBank Group increases its investments in artificial intelligence.
Cornerstone investors, including entities like Qatar Investment Authority and an arm of Visa, have expressed interest in purchasing up to $220 million of shares. PayPay plans to list on the Nasdaq under the symbol "PAYP."