SoftBank's PayPay Files for Potential US Stock Exchange Listing, Raising $2 Billion

SoftBank-backed payments company PayPay has filed a draft registration statement with the US SEC for a potential listing on a US stock exchange. The listing would involve American depositary shares representing PayPay's common shares, with details on timing, size, and pricing undisclosed. SoftBank intends to retain PayPay as a subsidiary and does not anticipate significant impact on its financial results. PayPay boasts a 70 million-user base and may raise $2bn in the offering, potentially led by Goldman Sachs, JPMorgan, Mizuho, and Morgan Stanley.

SoftBank-backed payments company PayPay has filed a draft registration statement with the U.S. Securities and Exchange Commission (SEC) for a potential listing on a U.S. stock exchange. The listing would involve American depositary shares (ADSs) representing PayPay's common shares, with details on timing, size, and pricing yet to be disclosed. SoftBank intends to retain PayPay as a subsidiary and does not anticipate significant impact on its financial results.

PayPay, with a 70 million-user base, is seeking to raise over $2 billion in the offering, potentially led by Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley. The IPO is expected to occur in the final quarter of 2025, contingent on market conditions and the completion of the SEC’s review process.

PayPay, a subsidiary of LY Corp, operates primarily in the SoftBank business, with three main segments: Media Business, Commerce Business, and Strategic Business. The company provides a range of services, including e-commerce, fintech, and cloud-related services, through platforms such as LINE, Yahoo, and PayPay. PayPay focuses on providing mobile payments and financial services such as banking and credit cards in Japan.

SoftBank Group Corp. (SBG), which owns PayPay, has been considering a U.S. market debut for the unit since at least 2023. If the IPO materializes, it will be SoftBank’s first U.S. listing of a majority-owned business since the blockbuster debut of chip designer Arm Holdings in 2023. Arm went public with a valuation of $54.5 billion and has since seen its market value soar past $145 billion.

The PayPay IPO comes at a time when U.S. equity markets are experiencing a long-awaited rebound in public offerings. Strong earnings from major tech firms and optimism over global trade talks have buoyed investor sentiment, marking a sharp contrast to earlier in the year when uncertainties around President Donald Trump’s tariff policies had slowed the pace of new listings.

PayPay's competitive edge lies in its AI-driven personalization, cross-border payment infrastructure, and strategic ecosystem integration. The company aims to replicate its Japanese success in the U.S. market, which is currently dominated by established players like Zelle, Venmo, and PayPal. PayPay's AI integration with SoftBank's Stargate infrastructure enables real-time fraud detection and personalized spending insights, which could enhance user engagement.

The IPO proceeds will fund PayPay's expansion, including cross-border payment solutions and AI product development. Investors should monitor key metrics post-IPO, such as user acquisition costs and cross-sell rates, to gauge PayPay's success in the U.S. market. PayPay's success hinges on its ability to navigate regulatory hurdles and compete with established players without incurring unsustainable costs.

References:
[1] https://www.ainvest.com/news/paypay-files-confidentially-listing-softbank-ties-2508/
[2] https://www.electronicpaymentsinternational.com/news/softbank-paypay-us-listing/
[3] https://www.republicworld.com/business/softbanks-paypay-files-for-us-adr-listing-ipo-could-raise-over-2-billion
[4] https://www.ainvest.com/news/paypay-prepares-ipo-aiming-2-billion-raise-valuation-10-billion-2508/