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

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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.

ECB Chooses AI Startup Feedzai to Combat Fraud in Upcoming Digital Euro

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The European Central Bank (ECB) has selected Portuguese artificial intelligence firm Feedzai to develop fraud-prevention systems for its planned digital euro, a project intended to strengthen Europe’s financial independence from U.S. payment networks and dollar-backed stablecoins.

The contract—valued at up to €237.3 million ($278.7 million)—was announced Thursday as part of a broader package of agreements advancing the digital euro initiative. Under the four-year deal, which could extend up to 15 years, Feedzai and its subcontractor PwC will create an AI-powered fraud scoring system capable of analyzing transactions for suspicious patterns based on user behavior, history, and interactions.

This technology will assist payment service providers in determining whether to approve or flag digital euro transactions—essentially, transfers between central bank–backed electronic wallets.

The ECB also awarded four additional contracts, ranging from €27.6 million to €220.7 million, to firms including Capgemini, which will support different technological and operational aspects of the digital currency ecosystem. Under these framework agreements, the ECB will only pay contractors once project implementation begins.

While the central bank continues to await legislative approval for the digital euro, officials describe it as a strategic response to Visa and Mastercard’s dominance in European payments and the rising influence of U.S.-linked stablecoins promoted under former President Donald Trump. If approved by mid-2026, the digital euro could be launched as early as 2029.

Feedzai, headquartered in Portugal, already monitors more than $8 trillion in global transactions annually, serving clients such as Novobanco and Wio Bank in Abu Dhabi. On the same day as the ECB announcement, Feedzai disclosed an additional $75 million in funding from Lince Capital, Iberis Capital, and Explorer Investments, signaling strong investor confidence in its role within Europe’s financial digitization push.

The partnership marks a major milestone in the ECB’s effort to balance innovation with financial security, ensuring that the future digital euro remains as safe as cash—but smarter.

Sberbank CEO Questions Benefits of Russia’s Digital Rouble Initiative

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German Gref, CEO of Russia’s largest lender Sberbank, expressed skepticism on Wednesday about the potential advantages of Russia’s digital rouble project, aside from possible benefits in cross-border settlements. Speaking at a financial forum in St Petersburg, Gref said he did not personally see the need for digital roubles and was uncertain how they would significantly improve Russia’s financial system.

The Bank of Russia recently announced that from September 1, 2026, Russian banks will be required to enable customers to make payments using digital roubles, with the project’s launch delayed by more than a year. The initiative is part of a global trend, with over 130 countries exploring digital currencies as they adapt to declining cash usage and challenges posed by cryptocurrencies like Bitcoin.

Moscow hopes the digital rouble will ease foreign trade payments complicated by Western sanctions linked to the Ukraine conflict. However, Gref highlighted that Russian banks already have advanced digital payment capabilities and reiterated his view that the digital rouble is unlikely to transform the domestic economy. While he acknowledged a potential role for the digital currency in international transactions, he sees no clear domestic advantage at present.