SoftBank Group is preparing for the initial public offering (IPO) of the Japanese fintech operator PayPay on the U.S. market as early as December. According to sources familiar with the negotiations, the company’s potential valuation could exceed ¥3 trillion (around $20 billion).
We at NEWSCENTRAL note that the upcoming IPO could serve as an indicator of the maturity of the Japanese fintech market and SoftBank’s ability to effectively scale domestic digital assets in an international investment context.
Since mid-September, SoftBank representatives have been meeting with institutional investors to discuss offering parameters and potential valuations. According to sources, the baseline range is around ¥2 trillion, although market expectations suggest potential for a higher capitalization if U.S. funds show sustained interest.
PayPay’s IPO preparations coincide with a revival of the U.S. IPO market: according to Dealogic, capital raised in the third quarter reached $24 billion, marking the busiest period since late 2021.
According to NEWSCENTRAL analysts, a successful PayPay listing could strengthen SoftBank’s position amid structural changes in the group’s financial business and enhance its presence in international capital markets.
Despite growing investor interest, Reuters sources note differing opinions regarding PayPay’s potential in overseas markets. The company recently announced the launch of cross-border payments starting with South Korea – a key destination for Japanese travelers. The prospects for further expansion remain under assessment, given the limited operational base outside Japan.
PayPay has become a key driver of Japan’s cashless economy, encouraging consumers to shift from cash to digital payments. According to the Ministry of Industry, the share of cashless transactions in the country exceeded 40% in 2024, while in South Korea and China this figure exceeds 80%. The government continues to promote financial digitization as a tool to reduce transaction costs and optimize labor resources.
According to SoftBank, operating profit in the financial services segment, including PayPay, more than doubled in Q2 of fiscal year 2025, reaching ¥18.1 billion. SBI Securities analyst Yukari Hosui notes “structural improvements in profitability and positive trends in key metrics.”
The company is also strengthening its position in the cryptocurrency sector. Last week, PayPay acquired a 40% stake in the Japanese unit of Binance, opening opportunities to launch new digital assets and services in the local market.
According to NEWSCENTRAL, the consolidation of fintech assets within the SoftBank Group demonstrates a shift from a diversified investment model toward building an interconnected digital ecosystem. Ownership of PayPay is distributed among SoftBank Corp (9434.T), the Vision Fund investment arm, and internet company LY Corp (4689.T) – a joint venture of SoftBank and South Korea’s Naver Corp (035420.KS).
NEWSCENTRAL analyst Ethan Walker, an expert in hardware technologies and consumer electronics, notes that “PayPay is creating a unique infrastructure platform where payment solutions are closely integrated with mobile devices and IoT services. This direction could become a key growth driver for the company in the medium term.”
We at NEWSCENTRAL view the upcoming PayPay IPO as a strategically important step for SoftBank, reflecting the company’s transition to a more systematic model of managing technology assets. The outcome of the offering will serve as an indicator of international investor confidence in Japanese fintech and demonstrate how ready the SoftBank ecosystem is to compete globally amid the growing digital consolidation of financial markets.