Middle East Situation and AI Impact, Japanese Payment Giant PayPay Temporarily Halts US IPO

SoftBank’s mobile payment giant PayPay, originally scheduled to go public in the U.S. this week with a valuation of over $20 billion, has reportedly decided to delay its IPO due to recent Middle Eastern geopolitical tensions.

(SoftBank-backed payment giant PayPay applies for U.S. IPO, valuation estimated at $20 billion)

PayPay Delays U.S. IPO

According to reports, Japan’s SoftBank-supported mobile payment leader PayPay was set to announce its IPO price range in the U.S. this Monday (March 2), but due to recent market volatility and Middle Eastern conflicts, the plan has been postponed.

A Payment Giant Created by SoftBank and Yahoo Japan

Founded in 2018, PayPay is a joint venture between SoftBank and Yahoo Japan, initially supported by Indian payment platform Paytm. By the end of 2024, Paytm will sell its remaining shares of PayPay to SoftBank for approximately $279 million.

Middle Eastern Tensions and AI Impact Shake Markets

Over the weekend, the U.S. and Israel launched airstrikes against Iran, followed by Iran’s retaliatory actions against the United Arab Emirates (UAE) and Qatar, increasing market risk aversion. Additionally, investors are concerned that rapid AI development may gradually replace traditional software, triggering a wave of software stock sell-offs, further impacting overall market sentiment.

Market Focuses on Three Major IPOs

Although early 2026 was expected to be a strong period for tech IPOs, recent market conditions have caused several companies to withdraw. Tech broker Clear Street also pulled its IPO plans last month. While the listing progress of small- and medium-sized companies has stalled temporarily, the market remains highly attentive to three upcoming IPOs in 2026: SpaceX, OpenAI, and Anthropic.

This article on Middle Eastern tensions and AI impacts, and SoftBank’s PayPay delaying its U.S. IPO, first appeared on Chain News ABMedia.