SoftBank's PayPay Unit Submits Application for US Listing

PayPay, a SoftBank payments app unit, has submitted an application for a US listing. The move is part of SoftBank's efforts to expand its presence in the US market and follows a similar listing by its Yahoo Japan subsidiary last year. SoftBank, a Japan-based company, operates in various business segments including mobile communication services, advertising, and investment.

PayPay Corporation, a subsidiary of SoftBank Group Corp., has submitted a draft registration statement on Form F-1 to the U.S. Securities and Exchange Commission (SEC) for a potential public listing of its American depositary shares (ADSs) on a U.S. stock exchange. The announcement was made on August 14, 2025, and the exact details of the listing, including the size and price, remain undetermined. The feasibility of the listing is contingent upon the completion of the SEC's review process and market conditions [1].

SoftBank Group Corp. (SBG) intends for PayPay to remain a subsidiary post-listing, with no expected material impact on its consolidated results or financial position. PayPay operates as a payments app, offering banking and credit card services, and is a subsidiary of SBG's subsidiaries, SoftBank Corp. and LY Corporation, as well as a portfolio company of SoftBank Vision Fund 2 [1].

The IPO is expected to raise over $2 billion and could take place in the fourth quarter of 2023, according to sources [2]. SoftBank has selected Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley to help organize the IPO [2]. This move follows the successful U.S. listing of Arm Holdings by SoftBank last year, which was valued at $54.5 billion and is now worth over $145 billion [2].

A U.S. listing for PayPay would mark a significant expansion for SoftBank into the U.S. market and highlight Japan's growing digital fintech ecosystem. The move is part of SoftBank's broader strategy to enter global capital markets, as evidenced by the selection of key banking partners to handle the sale [3].

SoftBank's careful approach reflects the lessons learned from other high-profile fintech listings, where market volatility and regulatory scrutiny have impacted outcomes. The company is evaluating market conditions, including investor sentiment toward fintech amid rising interest rates and tech-sector fluctuations, before making a final decision [3].

PayPay's U.S. IPO, if successful, would provide access to deeper financial markets and elevate its visibility among global investors. Proceeds from the listing could be used to fuel expansion into new verticals such as lending services or cross-border payments [3].

References:
[1] https://group.softbank/en/news/press/20250815
[2] https://www.ainvest.com/news/softbank-selects-banks-paypay-ipo-eyes-2-billion-raise-2508/
[3] https://theciotimes.com/paypay-eyes-u-s-capital-markets-softbank-lines-up-bankers-for-ipo/