It looks like Japanese payment app PayPay is set for a major debut with its upcoming initial public offering (IPO). Investors expect the company’s valuation to exceed three trillion yen (or approximately $20 billion) as SoftBank prepares to list the payments app operator in the United States as early as December, according to two sources.
PayPay is one of Japan’s leading mobile payment platforms, launched in 2018 through a collaboration between SoftBank and Yahoo Japan (now part of LY Corporation). Designed to accelerate Japan’s transition to a cashless economy, PayPay allows users to make payments via QR codes at millions of retail locations, as well as send peer-to-peer transfers and manage digital balances. Over the years, it has evolved into a broader financial ecosystem, integrating services like PayPay Bank and PayPay Securities.
As of 2025, PayPay has surpassed 70 million registered users in Japan with more than 36 million users completing identity verification (eKYC), unlocking advanced features like higher transaction limits and money transfers. The app’s growth has been supported by large-scale promotions, government incentives, and partnerships with major retailers and local governments. Its seamless interface, wide merchant adoption, and strong brand presence have helped PayPay become a household name in Japan’s mobile payments sector.
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In addition to core payment services, PayPay is increasingly integrating banking and investment features, aiming to create an all-in-one financial app. Backed by SoftBank’s financial resources and tech ecosystem, PayPay is positioned as a major player in Japan’s digital finance landscape, continuing to expand its footprint in payments, savings, and digital asset services.
SoftBank has been meeting with institutional investors since mid-September to discuss potential valuations in the IPO, the sources, who are familiar with the matter, said. According to the sources, investors see two trillion yen as a baseline but expect the valuation could top three trillion yen.
The potential valuation and the views of investors are being reported by Reuters for the first time.
“The key focus going forward will be to what extent overseas expansion can be realistically pictured as a growth story, given the lack of business foundations not only in the U.S. but also in Asia,” said the source.
SoftBank’s telecoms arm reported that operating profit at its financial segment, which includes PayPay, more than doubled to 18.1 billion yen in the April-June quarter.
“Structural profit improvement is progressing, and future growth can be anticipated,” said SBI Securities analyst Yukari Housui.
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While structural profitability is improving and operational metrics are strong, questions remain about its ability to scale internationally. If PayPay can build a credible global expansion story, it could become a flagship example of Japan exporting fintech innovation. For now, the upcoming IPO will test how much value investors place on a cashless-first strategy in a still-cautious global market.
Beyond its financial performance, PayPay represents a broader transformation in how everyday transactions are handled in Japan—a country traditionally reliant on cash. Its rapid growth has been fueled by tech-forward partnerships, government incentives for digital payments, and consumer demand for convenience. By embedding financial services like savings and securities into a single app, PayPay is not just a payment tool but an evolving digital finance platform.
As it eyes international markets and public investors, its ability to maintain user trust, navigate regulatory environments, and deliver sustainable innovation will be key. Whether it becomes a regional fintech leader or remains domestically dominant, PayPay’s trajectory will likely influence how other Japanese tech firms approach global growth in the increasingly competitive world of digital finance.
