SoftBank Prepares for PayPay's U.S. IPO After Blockbuster Results

SoftBank Group is preparing for the IPO of its payment app operator, PayPay, in the US stock market. The IPO is expected to raise up to $2 billion and could happen as soon as Q4 2025. PayPay offers mobile payments and financial services, but faces intense competition and reports bottom-line losses. SoftBank's strong Q1 results, driven by its AI investments, have boosted its stock price, which has gained 63.6% in 2025.

SoftBank Group is gearing up for the initial public offering (IPO) of its payment app operator, PayPay, in the US stock market. The IPO, expected to raise up to $2 billion, could take place as early as the fourth quarter of 2025 [1]. Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley have been selected to lead the listing process [1, 2, 3].

PayPay, launched in October 2018, has gained significant traction in Japan, with 70 million registered users, representing over 1 in 2 people and about 2 out of 3 smartphone users in the country [1]. The app has played a pivotal role in shifting Japanese consumers away from cash by offering mobile payment rebates and financial services such as banking and credit cards [1, 3].

SoftBank's strong first-quarter results, driven by its AI investments in Nvidia and OpenAI, have boosted its stock price, which has gained 63.6% in 2025 [2]. The company's net profit for Q1 2025 was $2.87 billion, with significant contributions from its stake in Nvidia and the SoftBank Vision Funds [2].

Despite its popularity, PayPay faces intense competition from both domestic and global players, which could impact its valuation. Additionally, the app has reported bottom-line losses, which may affect its IPO prospects [2].

The US IPO market has shown signs of recovery, with increased activity driven by strong tech earnings and progress in trade negotiations. This rebound follows a period of uncertainty over US President Donald Trump's tariff policies, which stalled new listings earlier this year [3].

Should the IPO proceed, it will be the first US listing of a SoftBank majority investment since the blockbuster IPO of Arm Holdings in 2023 [3]. The IPO of PayPay is expected to be a significant event in the US financial landscape, with potential implications for the global payments industry.

References:
[1] https://www.pymnts.com/news/ipo/2025/softbank-could-launch-paypay-united-states-ipo-q4/
[2] https://www.ainvest.com/news/softbank-prepares-paypay-ipo-q1-earnings-surprise-2508/
[3] https://theedgemalaysia.com/node/766166