SoftBank said on August 15, 2025, that PayPay, its payments app operator, has applied to list American depositary shares in the US.

The timeline, size, and price for the proposed listing have not been finalized.

Reuters previously reported that SoftBank had picked banks for a possible US initial public offering (IPO), which could raise over US$2 billion and may happen as early as Q4 2025.

PayPay, which offers digital payments, banking, and credit card services in Japan, will remain a SoftBank subsidiary after the listing.

Reuters reported in 2023 that SoftBank was considering a US listing for PayPay.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ PayPay’s success highlights how aggressive user acquisition can drive market dominance in cash-heavy economies

PayPay’s rapid rise demonstrates the power of bold marketing strategies in transforming entrenched payment behaviors.

The company reached 4 million users within just ten days of launch through aggressive cashback promotions, eventually growing to over 70 million users, nearly half of Japan’s population12.

This growth occurred despite Japan’s deeply cash-centric culture, where approximately 80% of retail transactions are still conducted in cash3.

PayPay now captures around 64% of Japan’s QR code transaction volume, showing how early market leadership through customer incentives can create lasting competitive advantages4.

The strategy worked because it directly addressed Japanese consumers’ main barrier to digital payments: the immediate financial benefit needed to overcome their strong preference for cash transactions.

2️⃣ The IPO timing reflects Japan’s structural shift toward comprehensive financial platforms

PayPay’s evolution from a simple payment app to a full financial ecosystem positions it well for U.S. market valuation premiums.

The platform has expanded beyond QR-code payments to offer banking, credit, and investment services, transforming into what the industry calls “embedded finance”4.

This timing aligns with Japan’s government push to increase cashless transactions from the current 21% to 40% by 2025, creating a tailwind for comprehensive digital financial services31.

The projected $10-12 billion valuation and target of 20-25x EBITDA multiple in U.S. markets reflects how American investors value integrated fintech platforms more highly than Japan’s traditionally conservative market metrics2.

PayPay’s comprehensive approach mirrors successful super-app models in other Asian markets, suggesting that U.S. investors see significant scalability potential in platforms that combine payments with broader financial services.

Recent SoftBank developments

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