Japan’s investment conglomerate SoftBank Group (SFTBY) could list its payment app operator, PayPay, in the U.S. stock market as early as this December.
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According to a Reuters report, investors expect that the valuation of PayPay could exceed 3 trillion yen or $20 billion.
PayPay offers mobile payments and financial services such as banking and credit cards.
Japanese Expansion
The baseline valuation is said to be based on the expansion of PayPay’s Japanese business, but there is a range of views among investors about its prospects for growing its overseas footprint, which could support a higher valuation.
PayPay announced last month that users would be able to make payments abroad, beginning with South Korea, which is a popular foreign destination for Japanese travelers.
“The key focus going forward will be to what extent overseas expansion can be realistically pictured as a growth story, given the lack of business foundations not only in the U.S. but also in Asia,” said the source quoted by Reuters.
PayPay has played a role in encouraging Japanese consumers to move away from a long-standing preference for cash by offering rebates on payments through its mobile app.
It is the market leader in QR code payments and also offers services including banking and credit cards.
SoftBank’s telecoms arm reported that operating profit at its financial segment, which includes PayPay, more than doubled to 18.1 billion yen in the April-June quarter.
“Structural profit improvement is progressing, and future growth can be anticipated,” said SBI Securities analyst Yukari Housui.
First Since Arm
PayPay is also taking steps to bolster its cryptocurrency business. Last week PayPay said it has acquired a 40% stake in the Japanese business of Binance and plans to launch new crypto services.
It has previously been reported that SoftBank has selected investment bankers including Goldman Sachs (GS), JPMorgan Chase (JPM) and Morgan Stanley (MS).
PayPay is majority-owned by SoftBank’s wireless carrier unit, its investment arm Vision Fund, and internet business LY Corp., a joint venture between SoftBank and Naver Corp – see below:
It is important to note that the amount raised and the IPO timing could change depending on market conditions. PayPay also faces intense competition from both domestic and global players, and the fintech company is still reporting bottom-line losses, which could hurt its valuation during the IPO.
If the IPO is successful, it would mark SoftBank’s first U.S. listing of a majority investment since Arm Holdings’ (ARM) blockbuster IPO, which was valued at $54.4 billion in 2023.
Is SFTBY a Good Stock to Buy Now?
SFTBY stock has gained 153.75% so far in 2025, supported by its focus on AI and data center infrastructure projects. The company is making significant bets in the technology space, attracting investor interest.
