SoftBank Group, led by billionaire Masayoshi Son, has filed for an initial public offering (IPO) of its popular payment app PayPay in the United States. The deal could raise more than $2 billion and value the fintech at over $10 billion, providing fresh capital for SoftBank’s aggressive push into artificial intelligence (AI).
On August 15, SoftBank confirmed that PayPay had filed to list American Depositary Shares in the U.S. However, the company noted that the “exact timing, size, and price of the IPO have not yet been determined.” Sources familiar with the matter said the listing could take place by the end of this year, with proceeds topping $2 billion in line with analysts’ forecasts.
According to Reuters, Goldman Sachs, JPMorgan Chase & Co, Mizuho Financial Group, and Morgan Stanley have been selected as lead underwriters. PayPay is currently owned by SoftBank Corp (telecom unit), Vision Fund, and LY Corp, a joint venture with South Korea’s Naver. SoftBank said PayPay will remain its subsidiary after listing.
Insiders suggested SoftBank may initially sell about 20% of its stake, leaving room for future sales. A dual listing in Japan could also be considered at a later stage. If successful, this would mark SoftBank’s first major U.S. IPO of a majority-owned asset since chip designer Arm Holdings in 2023.
The PayPay IPO is expected to support Masayoshi Son’s ambitious AI strategy. The SoftBank founder has pledged up to $500 billion for Project Stargate—a massive initiative to expand U.S. data centers and AI infrastructure in collaboration with OpenAI, Oracle, and Abu Dhabi’s sovereign wealth fund MGX.
At the same time, SoftBank is building its capabilities in semiconductors, anchored around its ownership of Arm in the UK and stakes in Nvidia and Taiwan’s TSMC, the world’s largest chipmaker. The group is also leading a $40 billion fundraising round for OpenAI that could lift the ChatGPT-maker’s valuation to $300 billion.
Further, SoftBank is exploring plans for a massive AI and robotics complex in Arizona, reflecting Son’s vision to dominate the next era of technological infrastructure.
SoftBank’s bold AI bets have sent its shares soaring nearly 80% this year to an all-time high. Investors are positioning themselves for a wave of lucrative IPOs, including PayPay and potentially Klarna and ByteDance.
“Investors increasingly view SoftBank as a proxy for investing in OpenAI,” said David Gibson, analyst at MST Financial. “Funds raised from PayPay’s IPO could provide the $30–49 billion needed over the next 12–18 months to finance Project Stargate and boost SoftBank’s stake in OpenAI.”
Launched in 2018, PayPay has revolutionized digital payments in Japan, encouraging consumers to move away from cash with generous cashback incentives. Today, it boasts over 70 million users—more than half of Japan’s population and roughly two-thirds of smartphone users.
Beyond payments, PayPay has expanded into banking services and credit card issuance, positioning itself as a true super app at the core of Japan’s financial ecosystem.
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