Japanese mobile payments leader PayPay, backed by SoftBank, is preparing for a potential U.S. IPO as early as December, with investors projecting valuations exceeding 3 trillion yen ($20 billion).
Key highlights:
- Institutional investor meetings suggest a baseline of 2 trillion yen, but growth prospects abroad could push the valuation higher
- PayPay is expanding overseas, starting with South Korea, while dominating QR code payments in Japan
- The firm is also strengthening its cryptocurrency business, acquiring a 40% stake in Binance Japan
- SoftBank’s financial segment, which includes PayPay, doubled operating profit to 18.1 billion yen in Q1 FY2025
Market context:
- U.S. IPO market is booming, raising $24B in Q3, the busiest quarter since 2021
- Around 20 Japanese firms have listed in the U.S. in the last five years, often achieving higher valuations than at home
“Structural profit improvement is progressing, and future growth can be anticipated,” says SBI Securities analyst Yukari Housui.