PayPay, the Japanese digital payments company supported by SoftBank Group, has submitted confidential documents for an initial public offering (IPO) in the United States.

Sources cited by Yahoo Finance report that PayPay is expected to seek a valuation of at least USD 10 billion. If this estimate holds true, the IPO could mark one of the largest US stock market listings by a Japanese firm.

PayPay’s application includes draft registration documents for the sale of American depositary receipts, with specific details such as pricing, share issuance, and listing timelines yet to be finalized. According to SoftBank, the listing is subject to regulatory approval from the US Securities and Exchange Commission and broader market conditions.

Background on PayPay’s Development

Launched through a partnership with Paytm, a former portfolio company of SoftBank’s Vision Fund, PayPay has grown into Japan’s leading QR-code payments service. Local media reported that the app was valued at around USD 7 billion in a transaction last year, reflecting significant growth from earlier valuations.

Following the IPO, SoftBank Corp. will maintain its majority stake in PayPay and does not expect this move to have a material impact on its consolidated earnings, as stated by the company.

The filing comes during a period when SoftBank Group is selling off parts of its portfolio to fund new investments in artificial intelligence. Recent activities include the sale of approximately USD 3 billion worth of shares in T-Mobile US. Additionally, Reuters reported that investment banks have already been appointed for PayPay’s planned US debut.