Holding a 40% stake in Binance Japan! SoftBank's PayPay to go public in the US IPO, valued at $13.4 billion

PayPay, a Japanese payments giant holding 40% of Binance Japan, is planning to go public in the United States with an estimated raise of $1.1 billion and a valuation of up to $13.4 billion. It has over 72 million users and will continue to deepen its focus on cryptocurrencies and Web3 in the future.

PayPay to List on U.S. IPO, Targeting $1.1 Billion Funding

According to Reuters, SoftBank Group’s Japanese digital payments company PayPay is advancing its initial public offering (IPO) plans in the U.S., with ticker symbol PAYP and a target raise of $1.1 billion, making it one of the largest IPOs by a Japanese company in the U.S.

Based on an official press release, PayPay and its supporters plan to sell nearly 55 million American Depositary Receipts (ADRs), priced between $17 and $20 per share.

Tokyo-based PayPay will offer 31.1 million shares, while its subsidiary under SoftBank Vision Fund 2 will sell 23.9 million shares.

At the top of the pricing range, PayPay’s market valuation would reach approximately $13.4 billion. The company initially sought a valuation exceeding $10 billion, with SoftBank founder Masayoshi Son even pushing for a target as high as $20 billion.

Image source: SoftBank press release. PayPay to go public in the U.S., aiming to raise $1.1 billion

Although earlier reports from sources familiar with Reuters indicated that due to recent Middle East conflicts causing global market volatility, PayPay’s planned roadshow was postponed before its Monday IPO launch, the company has decided to proceed with its listing plans nonetheless.

PayPay is expected to list on the Nasdaq Global Select Market, with Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley serving as joint bookrunners for the offering.

Revenue and Profit Growth, Leading Japan’s Payments Sector

Bloomberg reports that in the nine months ending December last year, PayPay generated 278.5 billion yen in revenue and achieved 103.3 billion yen in profit. This is a significant increase compared to the previous year’s same period, which saw 220.4 billion yen in revenue and 28.9 billion yen in profit.

Founded in 2018 as a joint venture between SoftBank and Yahoo Japan, PayPay specializes in QR code and barcode mobile payments. Through large-scale marketing campaigns and subsidy strategies, it rapidly expanded across Japan.

By the end of 2025, PayPay’s registered user base has exceeded 72 million, capturing a high penetration rate within Japan’s total population of approximately 123 million, making it one of the most popular digital wallets in the country.

Data from Japan’s Ministry of Economy, Trade and Industry shows that QR code payments accounted for 9.6% of Japan’s cashless transactions in 2024, up sharply from 0.2% in 2018, highlighting PayPay’s key role in promoting a cashless society in Japan.

Image source: Japan’s Ministry of Economy, Trade and Industry. QR code payments accounted for 9.6% of Japan’s cashless transactions in 2024, up from 0.2% in 2018

Investing in 40% of Binance Japan to Deepen Crypto Strategy

Beyond its achievements in traditional digital payments, PayPay is actively expanding into the cryptocurrency industry.

Last year, PayPay announced it had acquired a 40% stake in Binance Japan, forming a strategic partnership to integrate PayPay’s extensive cashless payment infrastructure with Binance’s blockchain technology, with plans to co-develop new products.

These new products include enabling users to buy cryptocurrencies via the Binance Japan app using PayPay Money, and allowing users to withdraw funds in PayPay Money when selling crypto assets.

PayPay’s CEO Yanagase Yoshiyoshi stated that investing in Binance Japan would combine PayPay’s convenience and security to offer more diversified financial solutions. Binance Japan General Manager Tsuno Takeshi also noted that by leveraging PayPay’s user base and Binance’s innovative technology, the company aims to expand the adoption and application of Web3 technology in Japan.

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