PayPay, the Japanese payments app majority-owned by SoftBank, could reach a valuation exceeding $20 billion (3 trillion yen) in its planned U.S. IPO as early as December, according to two people familiar with ongoing discussions.
SoftBank has been in talks with institutional investors since mid-September, gauging sentiment and exploring pricing scenarios. While 2 trillion yen is seen as the base valuation, investor enthusiasm around PayPay’s rapid domestic growth and fintech expansion could push it much higher.
Analysts highlight PayPay’s role in accelerating Japan’s shift away from cash, thanks to its rebate programs and leadership in QR code-based mobile payments. The firm has over 60 million users and has recently expanded into international payments, beginning with South Korea, a popular destination for Japanese travelers.
The company is also betting on cryptocurrency services, having acquired a 40% stake in Binance Japan, while SoftBank’s financial arm saw its operating profit more than double to 18.1 billion yen earlier this year. Despite optimism, some investors remain cautious about PayPay’s global expansion potential, noting limited presence outside Asia.
The IPO comes amid renewed activity in the U.S. listing market, which saw companies raise $24 billion in Q3, its busiest quarter since 2021. If successful, PayPay could join a growing list of Japanese firms seeking higher valuations abroad.
