SoftBank’s payment app PayPay targets $2B in U.S. IPO, taps Wall Street giants for Q4 debut

SoftBank is getting ready to test U.S. investor appetite for one of Japan’s most successful mobile payment ventures. The company has picked a lineup of Wall Street’s biggest banks to steer a potential $2 billion initial public offering for its payments app operator PayPay, according to an exclusive report from Reuters, citing two people with knowledge of the plan.

Goldman Sachs, JPMorgan Chase & Co, Mizuho Financial Group, and Morgan Stanley are leading preparations for the listing, the sources said. If all goes to plan, PayPay could hit the U.S. market as early as the final quarter of this year.

“The PayPay offering may raise more than $2 billion from investors when it takes place, which the sources said could be as soon as the final quarter of this year,” Reuters reported.

The deal would mark SoftBank’s first U.S. listing of a majority-owned business since chip designer Arm Holdings went public in 2023 at a $54.5 billion valuation — a figure that has since ballooned to more than $145 billion. It would also be one of the largest IPOs from a Japanese tech firm in years, underscoring renewed momentum in the American listings market.

PayPay has been a driving force in shifting Japanese consumers away from cash. Its rebates and promotions have helped it capture a significant share of the country’s digital payments sector, while its offerings have grown to include banking and credit card services.

Talk of a U.S. listing for PayPay has been around for years. Reuters reported in 2022 that SoftBank was weighing the move, and the conglomerate confirmed earlier this year that it intended to take the business public. The ownership is spread across SoftBank’s different arms: its wireless carrier SoftBank Corp, its Vision Fund, and LY Corp, a joint venture between SoftBank and South Korea’s Naver Corp.

The timing and size of the IPO will hinge on market conditions, the sources cautioned. U.S. IPO activity has been picking up, fueled by stronger tech earnings and optimism around trade talks that have helped restore investor confidence. That rebound is a stark shift from earlier this year, when uncertainty over President Donald Trump’s tariff policies stalled many new listings.

SoftBank, Goldman Sachs, JPMorgan, Mizuho, and Morgan Stanley declined to comment.