SoftBank has initiated plans for an initial public offering (IPO) in the United States for its Japanese payments app operator, PayPay. With 70 million users—a figure surpassing half of Japan’s population—the service is set to enter a competitive U.S. market.

Solid Performance in Japan

Since launching in 2018, PayPay has significantly dominated the Japanese market. In fiscal year 2024, it processed over 7.8 billion payments and accounted for one out of every five cashless transactions in Japan. According to reports, the company claims a two-thirds market share in domestic code payment services.

When the IPO takes place, expected as early as Q4 2025, PayPay is anticipated to raise over $2 billion from investors. Analysts predict that this offering could value the firm between $10 billion and $12 billion.

Future Plans

The proceeds will be used by SoftBank for expanding services, developing cross-border payment solutions, and investing in AI-driven financial products.

Market Competition in the U.S.

In the U.S., where the market is highly competitive with Zelle boasting over 150 million users and Venmo reaching more than 90 million users, it may be challenging for PayPay to gain traction. “The mobile payments space is saturated,” states Ben Danner, Senior Analyst at Javelin Strategy & Research. “To succeed, PayPay will need to provide substantial value through targeted merchant rebates and hyper-personalized experiences.”

Strategic Partnerships

To address this challenge, SoftBank and PayPay have been exploring new partnerships. In November 2024, the companies teamed up with Alipay+, Ant International’s mobile payment solution, to enhance cross-border payment capabilities for international visitors in Japan.

In September 2024, SoftBank also became the first Japanese company to offer direct salary payments via a digital wallet—PayPay’s digital wallet. This move underscores PayPay’s strategic focus on integrating with broader financial ecosystems across Asia.