PayPay Targets $1.1B in US IPO
Japanese fintech giant PayPay is aiming to raise $1.1 billion in a U.S. initial public offering. The move reflects the growing trend of successful international tech companies looking to the U.S. market for capital and further expansion.
PayPay is targeting a valuation of up to $13.4 billion, offering nearly 55 million American depositary shares priced between $17 and $20 each. The company plans to list on the Nasdaq under the ticker symbol PAYP, with Goldman Sachs, J.P. Morgan, Mizuho Securities, and Morgan Stanley as joint book-running managers. The fintech giant has demonstrated strong profitability, reporting a profit of 103.3 billion yen for the nine months ending December 31, 2025, a substantial increase from 29 billion yen in the same period the previous year. For the twelve months ending December 31, 2025, the company generated an impressive $2.1 billion in free cash flow. Launched in 2018, the QR code-based platform has achieved overwhelming dominance in its home market. As of December 2025, PayPay had 72 million registered users, which accounts for roughly 75% of all smartphone users in Japan. The service, a joint venture between SoftBank and Yahoo Japan (now part of LY Corporation), handles about two-thirds of Japan's QR and barcode payment transaction volume. Following the IPO, SoftBank Group entities will maintain a controlling voting stake of approximately 91.8%. A key driver for the U.S. listing is global expansion, underpinned by a strategic partnership with Visa. The collaboration aims to launch a digital wallet in the U.S. supporting both NFC and QR code payments, initially focusing on select regions like California. The offering has attracted strong institutional interest. A unit of Qatar Investment Authority, the Abu Dhabi Investment Authority, and a subsidiary of Visa have collectively indicated an intention to purchase up to $220 million worth of the shares.
