Japan's Kakao Pay Equivalent 'PayPay' to List on Nasdaq Next Month... "Market Cap Expected to Exceed 28 Trillion Won"

Payment Platform Under SoftBank
U.S. Service Expansion After Nasdaq Listing

PayPay, a payment platform under Japan's SoftBank, will be listed on the Nasdaq in the United States next month. This signals a full-fledged entry into the U.S. market, and its expected market capitalization is projected to exceed 3 trillion yen (approximately 28 trillion won).

The Nikkei reported on the 16th that PayPay has submitted documents related to an initial public offering (IPO) to the U.S. Securities and Exchange Commission (SEC). Based on the desired offering price range, the company plans to gauge demand from institutional investors and then determine the final offering price. It will also review whether to issue new shares, again using the desired offering price range as a reference.

PayPay was jointly established in 2018 by SoftBank and LY Corporation (Line Yahoo). Currently, SoftBank and LY Corporation together hold a total 66% stake, while the remaining 34% is owned by SoftBank Vision Fund 2, an investment fund under SoftBank. According to the Nikkei, during the listing process, SoftBank, the largest shareholder, plans to sell 10% of its holdings. This move is aimed at meeting the Nasdaq 100 listing requirement that at least 10% of shares be in free float.

PayPay launched its barcode-based smartphone payment service in October 2018. By rapidly expanding its merchant network, mainly among retailers and restaurants, and implementing large-scale consumer cashback and reward programs, it has secured about a 70% market share in Japan's smartphone payment services market. Its transaction volume for fiscal 2024 reached 15.4 trillion yen (approximately 145.4591 trillion won), up 23% from the previous year.

With domestic market growth potential constrained by low birth rates and an aging population, PayPay has turned its attention overseas. It began offering services in Korea last year and is also working to enter the U.S. market through a partnership with Visa. Leveraging this Nasdaq listing, the company aims to raise its brand recognition and roll out global services focused on the United States and the broader Asian region.

PayPay has been pursuing a Nasdaq listing since August last year. The Nikkei analyzed that, unlike the Tokyo Stock Exchange, where listing can take around three years, Nasdaq offers the advantage of a much shorter process of about 18 months. The Nikkei added, "If cases like PayPay increase, there is a possibility that more Japanese companies will bypass listing in Japan and instead target listings in the United States."