Japanese payments app PayPay could be valued at over ¥3 trillion (about $20 billion) when it lists shares in the U.S. this December, according to sources familiar with the plan.
SoftBank has been in talks with institutional investors since mid-September, setting a baseline valuation around ¥2 trillion but expecting it could climb higher if PayPay’s overseas expansion prospects gain credibility.
PayPay has boosted its business in Japan with QR code–based payments, credit cards, and banking services. It is also stepping into cross-border payments, starting with South Korea, a key market for Japanese travelers.
Investors are divided. Some believe PayPay’s strong domestic footing supports a premium valuation. Others warn that its international growth is unproven, especially in markets where it has little presence.
In related moves, PayPay acquired a 40% stake in Binance Japan to expand into cryptocurrency services.
SoftBank’s other financial arms — SoftBank Corp and LY Corp — already own stakes in PayPay. The Japanese cashless payments sector is pushing growth, as national targets aim to surpass 40% adoption.
If successful, this IPO would mark one of the most anticipated Japanese tech listings in recent years. The deal’s terms and valuation will likely hinge on investor confidence in PayPay’s ability to scale beyond Japan.
