SoftBank plans US IPO for PayPay, aiming to raise $2B
What's the story
SoftBank is preparing to take its Japanese payments app operator, PayPay, public in the US. The IPO could raise over $2 billion from investors. Leading the preparations are Goldman Sachs, JPMorgan Chase & Co., Mizuho Financial Group, and Morgan Stanley. The listing could happen as early as Q4 this year, depending on market conditions.
Market impact
PayPay has changed payment habits of Japanese consumers
PayPay has been a major player in changing the payment habits of Japanese consumers, who have long favored cash. The app offers rebates on payments made through its mobile platform and also provides financial services like banking and credit cards. SoftBank had first hinted at a possible US listing for PayPay two years ago, and confirmed earlier this year that it intends to go ahead with the IPO.
Ownership details
It is owned by several SoftBank entities
PayPay is owned by several SoftBank entities, including wireless carrier SoftBank Corp., the Vision Fund investment arm, and internet business LY Corp. This would be SoftBank's first US listing of a majority-owned investment since the blockbuster IPO of Arm Holdings in 2023. The chip designer was valued at $54.5 billion when it went public, but has since seen its market cap grow to over $145 billion today.