SoftBank’s PayPay Seeks U.S. IPO in 2025

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SoftBank’s digital-payment subsidiary, PayPay Corp, has submitted an application to list American Depositary Shares (ADS) on a U.S. stock exchange, pending regulatory approval and finalisation of details. The exact timing, offer size, and pricing have not been confirmed, although industry analysts suggest the public listing could potentially raise more than $2 billion and may take place as early as the fourth quarter of 2025.

SoftBank confirmed that PayPay will remain a subsidiary after the listing, indicating that control over the payments operator will continue to reside with the Japanese conglomerate. Reuters previously reported that SoftBank has engaged investment banks including Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley to assist with preparations for the potential offering and provide advisory services.

Launched in 2018 as a joint venture, PayPay has grown to become one of Japan’s largest digital-payment platforms, supporting the shift from cash through consumer adoption incentives and widespread promotions. The platform has expanded its offerings to include additional financial services, such as banking products, credit card services, and digital wallets, catering to both retail and small-business customers.

If the U.S. IPO proceeds, it would be SoftBank’s first majority-owned business to list in the United States since chip designer Arm Holdings debuted on U.S. markets in 2023. That IPO was initially valued at $54.5 billion, with subsequent market performance exceeding early expectations, demonstrating continued investor interest in technology-related listings.

The proposed ADS offering illustrates ongoing activity in U.S. initial public offerings, particularly in the technology sector. Analysts have cited improved investor sentiment and stronger earnings reports from major tech companies as factors contributing to renewed interest in new public listings.

Observers also note that SoftBank’s expanding global presence and PayPay’s market penetration may influence investor considerations, though final decisions regarding pricing, timing, and allocation will depend on market conditions at the time of the offering.

The ADS listing process will require PayPay to comply with U.S. Securities and Exchange Commission regulations, including disclosure of financial statements, corporate governance practices, and other reporting requirements. SoftBank has confirmed that the company aims to maintain operational control and strategic decision-making while meeting U.S. regulatory standards for listed entities.

The outcome of this potential listing is expected to provide additional capital for PayPay’s international expansion and technology development, while enabling U.S. investors to participate in the company’s growth. By maintaining subsidiary status under SoftBank, PayPay can continue leveraging the parent company’s resources and expertise while adhering to compliance obligations in the U.S. markets.