{"id":80619,"date":"2025-10-15T19:05:08","date_gmt":"2025-10-15T19:05:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/80619\/"},"modified":"2025-10-15T19:05:08","modified_gmt":"2025-10-15T19:05:08","slug":"payments-app-paypays-valuation-could-top-20-billion-in-ipo","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/80619\/","title":{"rendered":"Payments App PayPay\u2019s Valuation could top $20 Billion in IPO"},"content":{"rendered":"

Japan\u2019s PayPay\u2019s<\/a> valuation could reportedly exceed $20 billion as it prepares to go public.<\/p>\n

The SoftBank<\/a>-owned payments app is set for an initial public offering (IPO) in the U.S. in December, and investors think the company\u2019s valuation could surpass 3 trillion yen, or $20 billion, Reuters reported<\/a> Tuesday (Oct. 14), citing sources familiar with the matter.<\/p>\n

The company\u2019s baseline valuation of 2 trillion yen ($13 billion) is based on the expansion of PayPay\u2019s Japanese business, the report said. One source told Reuters there is a range of opinions among investors on PayPay\u2019s expansion prospects outside of Japan, which could support a greater valuation.<\/p>\n

\u201cThe key focus going forward will be to what extent overseas expansion can be realistically pictured as a growth story, given the lack of business foundations not only in the U.S. but also in Asia,\u201d said the source.<\/p>\n

SoftBank had previously considered listings<\/a> for PayPay in 2021 and again in 2023, PYMNTS reported last month.<\/p>\n

According to the report, PayPay announced in September that users could now make payments abroad, starting with South Korea, which is a popular tourist destination for Japanese travelers.<\/p>\n

Advertisement: Scroll to Continue<\/p>\n

Reuters also notes that PayPay has played a part in pushing consumers in Japan to pivot away from their long-held preference for cash<\/a> by offering rebates on mobile app payments. The cashless cashless payments ratio in Japan exceeded 40% last year, compared to upwards of 80% in South Korea and China, the report added.<\/p>\n

The report points out that PayPay\u2019s IPO plans comes as the market for listings in the U.S. enjoyed its busiest quarter in almost four years. Companies raised $24 billion through first-time share sales during the third quarter, Reuters added, citing data from Dealogic.<\/p>\n

Elsewhere on the IPO front, PYMNTS wrote last week about the resurgence of listings<\/a> in the FinTech sector following a number of quiet years.<\/p>\n

\u201cHowever, it\u2019s not the same speculative surge that defined the last cycle,\u201d that report added, noting that early offerings<\/a> from companies like Klarna<\/a> and Circle<\/a> were for the most part\u00a0 met with optimism<\/a> and double-digit increases from their offering prices.<\/p>\n

Before this year, \u201cI think most people were looking at FinTechs as firms that were trying to grow as quickly as possible to try to get as large a population\u201d of customers in place as possible, Edward Best<\/a>, co-chair of the capital markets practice at Willkie Farr & Gallagher<\/a>, said in an interview with PYMNTS.<\/p>\n

\u201cThey were chasing numbers, and many of them were unprofitable for a number of years.\u201d<\/p>\n

Best said this year\u2019s listings and investors\u2019 response to them demonstrate a fundamentally different environment.<\/p>\n

\u201cThe overall market is certainly much more mature,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"Japan\u2019s PayPay\u2019s valuation could reportedly exceed $20 billion as it prepares to go public. The SoftBank-owned payments app…\n","protected":false},"author":2,"featured_media":80620,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[43640,11502,10650,40366,4322,40365,342,11500,111,43,139,69,62080,4411,739,52654,145,741],"class_list":{"0":"post-80619","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mobile","8":"tag-cross-border-payments","9":"tag-digital-payments","10":"tag-initial-public-offering","11":"tag-initial-public-offerings","12":"tag-ipo","13":"tag-ipos","14":"tag-mobile","15":"tag-mobile-payments","16":"tag-new-zealand","17":"tag-news","18":"tag-newzealand","19":"tag-nz","20":"tag-payment-apps","21":"tag-paypay","22":"tag-pymnts-news","23":"tag-softbank-group-corp","24":"tag-technology","25":"tag-whats-hot"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/80619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=80619"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/80619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/80620"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=80619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=80619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=80619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}