PayPay’s U.S. IPO could top $20 billion valuation, sources say

PayPay, Japan’s leading digital payments platform backed by SoftBank, could be valued at more than 3 trillion yen ($20 billion) in its upcoming U.S. initial public offering (IPO) planned for December, according to people familiar with the matter.

The potential listing would make PayPay one of the largest Japanese tech IPOs in years. SoftBank, which owns PayPay through several entities including SoftBank Corp, its Vision Fund, and LY Corp, has been meeting institutional investors since mid-September to discuss pricing and valuation.

According to sources, investors view 2 trillion yen as a conservative baseline but expect higher figures due to PayPay’s dominance in Japan’s QR code payment market and its expanding suite of financial services, including banking, credit cards, and cryptocurrency.

PayPay recently launched its international payments service, beginning with South Korea, as it seeks to strengthen its growth story beyond Japan. However, some investors remain cautious about the company’s overseas potential, citing its limited infrastructure outside Asia.

Japan’s cashless payments ratio exceeded 40% last year — still below South Korea and China’s 80%+ levels — leaving room for domestic growth. Meanwhile, SoftBank’s financial segment, which includes PayPay, reported a doubling of operating profit to 18.1 billion yen in the April–June quarter.

PayPay is also moving into crypto services after acquiring a 40% stake in Binance Japan, reinforcing its position as a comprehensive fintech player.