PayPay Seeks Up to $1.1 Billion in Nasdaq IPO, Leveraging SoftBank Backing and Binance Japan Stake

PayPay Corp., Japan’s largest cashless payments provider and a 40% shareholder in Binance Japan, filed with the U.S. Securities and Exchange Commission on March 2, 2026, to raise up to $1.1 billion in an initial public offering on the Nasdaq Global Select Market.

The Tokyo-based company and a selling shareholder affiliated with SoftBank Vision Fund II are offering 55 million American depositary shares at $17 to $20 each, targeting a valuation exceeding $13 billion at the top end of the range. The IPO, expected to price on March 11, represents the largest U.S. listing by a Japanese company in history and comes amid heightened market volatility following weekend military strikes on Iran.

IPO Details and Valuation

PayPay is offering 31.1 million American depositary receipts, while an affiliate of SoftBank Vision Fund II is selling 23.9 million ADRs, according to the SEC filing. Each ADR represents one common share. At the $20 upper end of the price range, PayPay would achieve a market capitalization of approximately $13.4 billion based on outstanding shares listed in the filing.

Abu Dhabi Investment Authority, a unit of Qatar Investment Authority, and an arm of payments giant Visa Inc. have agreed to purchase up to $220 million worth of shares in aggregate, providing anchor investor support for the offering.

The IPO was originally scheduled to launch before markets opened on March 2 but was postponed after global markets were rattled by U.S. and Israeli airstrikes on Iran over the weekend, which sent energy prices and bond yields surging. Formal marketing is now expected to commence following the delay.

SoftBank Relationship and Voting Control

SoftBank Group is expected to control approximately 92% of voting rights in PayPay following the IPO, according to the filing. The company originated in 2018 as a joint venture with SoftBank Vision Fund-backed Indian payments firm Paytm.

SoftBank founder Masayoshi Son had initially pushed for a valuation as high as $20 billion, though the current range reflects more conservative market conditions. The offering provides SoftBank with another publicly traded asset tied to its broader digital finance strategy as the conglomerate continues monetizing holdings to finance new investments in artificial intelligence. SoftBank Group divested nearly $13 billion worth of T-Mobile US Inc. shares between June and December 2025 alone.

Strategic Partnership with Binance Japan

PayPay deepened its involvement in cryptocurrency markets through a capital and business alliance with Binance Japan in October 2025, acquiring a 40% stake in the exchange. The partnership aims to link digital payments with cryptocurrency, enabling Binance Japan users to fund purchases and withdraw proceeds through PayPay Money.

The integration represents a strategic bridge between Japan’s dominant cashless payment infrastructure and the growing cryptocurrency ecosystem. With over 72 million registered users as of December 2025 in a country of approximately 123 million people, PayPay provides substantial distribution reach for crypto-related financial services.

Binance Japan operates as the local entity of global cryptocurrency exchange Binance, serving Japanese customers under regulatory oversight.

Financial Performance and User Growth

PayPay reported profit of ¥103.3 billion on revenue of ¥278.5 billion in the nine months ended December 2025, compared to profit of ¥28.96 billion on revenue of ¥220.4 billion in the same period a year earlier. The financial results demonstrate the company’s scaling economics as Japan’s cashless payment adoption accelerates.

As of December 2025, PayPay users exceeded 72 million, representing more than half of Japan’s total population. The company achieved rapid adoption through heavy marketing, aggressive user subsidies, and SoftBank’s support in signing merchants across Japan.

QR code payments accounted for 9.6% of Japan’s total cashless transactions in 2024, up from just 0.2% in 2018, according to Japan’s Ministry of Economy, Trade and Industry. Credit cards remain dominant at 82.9% of cashless payments, though their market share has been gradually declining.

International Expansion and Visa Partnership

PayPay has been expanding internationally ahead of its global offering. In 2025, the company began making its service accessible in over 2 million shops in South Korea for Japanese customers traveling abroad. In February 2026, PayPay announced a partnership with Visa to explore opportunities in the U.S. market.

These expansion initiatives position PayPay to extend its reach beyond Japan’s borders and capture payment volume from Japanese tourists overseas while potentially entering new markets.

Underwriters and Listing Timeline

The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Mizuho Financial Group, and Morgan Stanley. Shares are expected to trade on the Nasdaq Global Select Market under the symbol “PAYP.”

The IPO is expected to price on March 11, assuming market conditions stabilize following the initial volatility triggered by Middle East conflict. A successful debut would mark one of the larger Japanese listings in the U.S. in recent years and test investor appetite for fintech offerings amid geopolitical uncertainty.

FAQ: PayPay IPO and Binance Japan Stake

What is PayPay’s relationship with Binance Japan?

PayPay acquired a 40% stake in Binance Japan in October 2025 through a capital and business alliance. The partnership enables Binance Japan users to fund purchases and withdraw proceeds through PayPay Money, linking Japan’s largest cashless payment platform with cryptocurrency exchange services.

What is the expected valuation and timing for PayPay’s IPO?

PayPay is seeking to raise up to $1.1 billion by offering 55 million American depositary shares at $17 to $20 each. At the top end, the company would be valued at approximately $13.4 billion. The IPO is expected to price on March 11, 2026, following a brief delay due to market volatility from Middle East conflict.

How much control will SoftBank retain after the IPO?

SoftBank Group is expected to control approximately 92% of voting rights in PayPay following the IPO. The company originated as a joint venture with SoftBank-backed Paytm in 2018 and has received substantial support from SoftBank in merchant acquisition and user growth.