PayPay, a Japan-based mobile payment app and digital wallet, announced terms for its IPO on Monday.
The Tokyo, Japan-based company plans to raise $1.0 billion by offering 55 million ADSs (44% secondary) at a price range of $17 to $20. Cornerstone investors Qatar Holding, Visa, and Abu Dhabi Investment Authority have indicated on $220 million of the IPO, or 21.6% of the deal in total.
At the midpoint of the proposed range, PayPay would command a market cap of $12.4 billion. Less than a month ago, news reports suggested PayPay had planned to raise money at a valuation of more than $19.6 billion. However, macroeconomic headwinds and fears of AI disruption have pressured fintech stocks over the past, with the majority of fintech IPOs from the past year trading below offer.
While PayPay is keeping its float relatively low at 8.2% of shares outstanding, the $1 billion deal size would still represent the largest US IPO from a Japanese issuer on record, above 2016's Line, which completed a dual listing that raised $722 million in the US and $427 million in Japan.
PayPay is a Japanese financial technology company that operates a digital finance platform connecting users and merchants. Its business is divided into two segments: payments and financial services. The payment segment includes its code-based mobile payment app, PayPay, and PayPay Card, a credit card service. The financial services segment includes app-based banking services through PayPay Bank Corporation and investment and brokerage services through PayPay Securities Corporation. Together, these services allow users to make payments, access credit, manage bank accounts, and invest through an integrated mobile platform.
PayPay was founded in 2018 and booked $2.3 billion in revenue for the 12 months ended December 31, 2025. It plans to list on the Nasdaq under the symbol PAYP. Goldman Sachs, J.P. Morgan, Mizuho Securities, Morgan Stanley, Citi, Jefferies, BofA Securities, Societe Generale, Nomura Securities, Cantor Fitzgerald, Credit Agricole CIB, Daiwa Securities, Deutsche Bank, Natixis, SMBC Nikko, and WR Securities are the joint bookrunners on the deal. It is expected to price the week of March 9, 2026.
