The planned U.S. listing of Japanese digital payments operator PayPay is likely to be priced at the lower end of its marketed range, according to people familiar with the matter who spoke to Reuters.
This comes as geopolitical tensions in the Middle East inject fresh volatility into global financial markets.
The company, backed by Japanese technology investor SoftBank Group, is offering 55 million American depositary shares priced between $17 and $20 each, according to regulatory filings. At the top of the range, the offering would value the company at roughly $13.4 billion. However, the final price is now expected to come closer to the bottom of that range despite strong demand from investors, the people said.
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PayPay’s order book closed more than five times oversubscribed, signaling robust interest even as broader market sentiment has been shaken by escalating geopolitical risks. Final pricing for the offering is expected after U.S. market hours on Wednesday.
Several major technology companies have committed to invest in the IPO, including China’s Tencent, the operator of the widely used payments platform Alipay owned by Ant Group, and U.S. technology giant Alphabet, according to one of the people.
Their participation is seen as an affirmation of the strategic importance of the Japanese fintech market and highlights the continued interest of global technology firms in digital payments platforms.
A Key Driver Of Japan’s Shift Toward Cashless Payments
Since its launch, PayPay has played a significant role in accelerating Japan’s transition away from cash, a shift that has historically been slower than in many other advanced economies.
Japan has long been known for its strong reliance on physical currency. The country’s high levels of trust in cash transactions, combined with an aging population and entrenched payment habits, have historically slowed the adoption of digital wallets.
PayPay has attempted to change that dynamic by aggressively offering incentives such as cashback campaigns, rebates, and merchant promotions to attract users. The strategy has proven effective. The platform now counts more than 70 million registered users, making it one of the largest digital payment ecosystems in Japan.
A Turbulent Path To The Public Markets
Despite the strong demand for the offering, PayPay’s journey to a public listing has faced repeated disruptions.
The company initially postponed its IPO roadshow last week after financial markets were shaken by escalating conflict in the Middle East, which triggered risk aversion among investors and volatility in global equities.
The listing had already been delayed once before. Last year, the company postponed its IPO plans amid the U.S. government shutdown, which disrupted regulatory processes and slowed the progress of required filings.
The latest attempt to go public comes at a time when fintech valuations have experienced fluctuations following a surge during the pandemic-era technology boom.
SoftBank’s next major U.S. listing
For SoftBank, the listing represents the next major test of investor appetite for its portfolio companies. PayPay would mark the first U.S. IPO of a SoftBank majority-backed investment since the blockbuster listing of chip designer Arm Holdings in 2023.
That offering valued Arm at $54.5 billion at the time of its debut. Since then, the company’s market capitalization has climbed to nearly $130 billion, driven by surging demand for chips used in artificial intelligence and data centers.
The success of the Arm listing helped revive investor interest in large technology IPOs and provided a major boost to SoftBank’s investment strategy.
PayPay’s public debut also comes as investment banks anticipate a broader rebound in global initial public offerings. According to forecasts by Goldman Sachs, total IPO proceeds could surge to a record $160 billion in 2026, potentially quadrupling from recent levels as interest rates stabilize and investor confidence improves.
Several high-profile listings are being closely watched by markets. These could include the potential public offering of aerospace company SpaceX, founded by Elon Musk, as well as artificial intelligence firms OpenAI and Anthropic.
A successful PayPay IPO could therefore serve as an early indicator of whether investors are ready to re-embrace large technology listings after several years of muted activity.
PayPay plans to list its American depositary shares on the Nasdaq under the ticker symbol “PAYP”.
The offering is being led by a group of global investment banks, including Goldman Sachs, J.P. Morgan, Mizuho Financial Group, and Morgan Stanley, which are acting as joint book-running managers.
If completed successfully, the IPO is expected to rank among the most prominent fintech listings involving a Japanese digital payments platform and could provide SoftBank with another high-profile asset in global public markets.