SoftBank lists PayPay on Nasdaq in largest Japanese company U.S. IPO in a decade

Overview

PayPay, the mobile wallet used by three out of four smartphone owners in Japan, began trading on the Nasdaq on March 12 after raising $880 million in its initial public offering. The company sold roughly 55 million American Depositary Shares at $16 each, below its marketed range of $17 to $20, valuing the business at approximately $10.7 billion. It is the largest stock offering by a Japanese company on a U.S. exchange in over a decade.

The listing is a two-story event. For PayPay, it is a transition from Japan's most popular QR code payment app into a publicly traded, Visa-partnered fintech with stated ambitions to expand into the United States. For SoftBank, it's a fundraising move: funding a $22.5 billion OpenAI pledge and AI expansion; despite PayPay pricing below range amid Iran conflict, success suggests investor appetite—just at a discount.

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Key Indicators

$880M

IPO proceeds raised

Total capital raised through the sale of approximately 55 million American Depositary Shares at $16 each

$10.7B

IPO valuation

Below SoftBank founder Masayoshi Son's reported target of $20 billion and the initial marketed range implying up to $13.4 billion

72M

Registered users in Japan

Roughly 75% of all smartphone users in the country as of December 2025

$2.33B

Annual revenue

For the twelve months ending December 31, 2025, with net income of $720 million

~70%

QR code payment market share

PayPay handles roughly seven out of every ten QR code transactions in Japan

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People Involved

Masayoshi Son

Actively monetizing SoftBank portfolio assets to fund AI investments

Ichiro Nakayama

Leading PayPay through IPO and U.S. expansion planning

Organizations Involved

PayPay Corporation

Digital Payments Company

Newly listed on Nasdaq under ticker PAYP

Japan's most widely used mobile payment platform, processing over $100 billion in annual gross merchandise volume through QR code and barcode payments.

SoftBank Group Corp.

Japanese investment holding company

Selling portfolio assets to fund AI strategy; PayPay's controlling shareholder post-IPO

Japanese multinational conglomerate that controls PayPay through its subsidiary structure, now redirecting capital from asset sales toward artificial intelligence investments including a $22.5 billion commitment to OpenAI.

Visa Inc.

Financial Services Corporation

Strategic partner and cornerstone IPO investor in PayPay

The world's largest payment processing network, which entered a strategic partnership with PayPay in February 2026 to explore joint expansion of PayPay's digital wallet into the United States.

Timeline

June 2018 March 2026

10 events Latest: March 12th, 2026 · 3 months ago

Tap a bar to jump to that date

March 2026
PayPay begins trading on Nasdaq under ticker PAYP
Latest Milestone

American Depositary Shares of PayPay Corporation commenced trading on the Nasdaq Global Select Market, marking the largest U.S. stock offering by a Japanese company in over a decade.
March 12th, 2026
PayPay prices IPO at $16, below marketed range
Financial

Facing market turbulence from the Iran conflict, PayPay priced its offering at $16 per American Depositary Share, 6% below the low end of its $17-$20 range, raising $880 million at a $10.7 billion valuation.
March 11th, 2026
PayPay launches IPO roadshow targeting up to $13.4 billion valuation
Financial

PayPay began marketing approximately 55 million American Depositary Shares at $17 to $20 per share, aiming to raise up to $1.1 billion. Market conditions deteriorated as the Iran conflict intensified.
March 3rd, 2026
February 2026
Visa, Qatar, and Abu Dhabi funds commit $200M+ as cornerstone investors
Financial

Visa, the Qatar Investment Authority, and the Abu Dhabi Investment Authority agreed to anchor the IPO with more than $200 million in combined cornerstone investment commitments.
February 27th, 2026
PayPay publicly files for Nasdaq IPO and announces Visa partnership
Corporate

PayPay submitted its public Form F-1 and simultaneously announced a strategic partnership with Visa to explore joint expansion into the U.S. market, combining PayPay's digital wallet with Visa's global payments network.
February 12th, 2026
August 2025
SoftBank confidentially files PayPay IPO with SEC
Regulatory

PayPay submitted a confidential draft registration statement (Form F-1) to the U.S. Securities and Exchange Commission, formally starting the listing process.
August 15th, 2025
July 2025
PayPay reaches 70 million registered users
Milestone

The platform surpassed 70 million users, covering more than half of Japan's adult population and roughly two-thirds of all smartphone owners.
July 15th, 2025
2021
SoftBank sets U.S. listing for PayPay as strategic goal
Corporate

SoftBank Group identified a future U.S. IPO for PayPay as part of its long-term plan to monetize the growing payments business.
2021
October 2018
PayPay launches QR code payments in Japan
Product

The service went live with aggressive cashback promotions of up to 20%, rapidly driving consumer and merchant adoption during Japan's government-backed cashless push.
October 1st, 2018
June 2018
PayPay founded as SoftBank-Yahoo Japan joint venture
Corporate

SoftBank and Yahoo Japan created PayPay Corporation to build a mobile payment service for the Japanese market, licensing QR code payment technology from India's Paytm.
June 15th, 2018

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

July 2016

Line Corporation dual-lists on NYSE and Tokyo Stock Exchange (2016)

Line Corporation, a Japanese messaging app owned by South Korea's Naver, raised $1.14 billion in a dual listing on the New York Stock Exchange and Tokyo Stock Exchange. Shares surged 30% on the first day, valuing the company at over $9 billion. It was the largest tech IPO of 2016 and the first Japanese company to list on the NYSE in six years.

Then

The IPO was celebrated as a sign of renewed Japanese tech confidence. Line's stock peaked within months of listing.

Now

Line later merged with Yahoo Japan under Z Holdings in 2021, delisting from both exchanges. The combined entity became the parent structure from which PayPay itself emerged.

Why this matters now

PayPay's Nasdaq listing is explicitly being compared to Line's as the largest U.S. offering by a Japanese company in a decade. Both companies represent different chapters of SoftBank's broader strategy to take Japanese digital platforms to global capital markets.

November 2021

Paytm IPO on India's National Stock Exchange (2021)

One97 Communications, the parent of India's Paytm digital wallet, raised $2.5 billion in India's largest-ever IPO at a valuation of roughly $20 billion. Shares fell 27% on the first day of trading and continued declining, eventually losing 70% of their value. By December 2024, Paytm sold its remaining stake in PayPay to SoftBank for $250 million.

Then

The IPO became a cautionary tale about digital payments companies listing at inflated valuations before establishing sustainable profitability.

Now

Paytm's struggles forced a business restructuring, regulatory intervention by India's central bank, and a market-wide reassessment of fintech valuations. By 2025 Paytm's market capitalization had fallen to $6.7 billion.

Why this matters now

PayPay was literally built on Paytm's technology and SoftBank's shared investment thesis about QR code payments. PayPay's below-range pricing may reflect investor caution informed by Paytm's experience, though PayPay's financials are considerably stronger: $720 million in net income versus Paytm's persistent losses at IPO.

September 2023

Arm Holdings Nasdaq IPO (2023)

SoftBank listed chip designer Arm Holdings on Nasdaq, raising $4.87 billion at a $54.5 billion valuation in the largest IPO of 2023. SoftBank retained over 90% ownership. The listing came after a period of massive Vision Fund losses and represented SoftBank's return to public markets as a seller.

Then

Arm shares surged more than 50% in the months after listing, buoyed by the artificial intelligence chip boom. The success validated SoftBank's timing.

Now

Arm's strong performance gave SoftBank the financial credibility and collateral to pursue its aggressive AI investment strategy, including the $22.5 billion OpenAI commitment. SoftBank has since used its Arm stake as collateral for margin loans.

Why this matters now

PayPay is the first SoftBank-controlled company to list since Arm. The playbook is the same: monetize a minority stake in a portfolio company to fund the next strategic bet. Where Arm funded the pivot to AI, PayPay's IPO proceeds help sustain it.