PayPay, a Japanese payment application operator under SoftBank, is advancing its highly anticipated initial public offering (IPO) following delays in regulatory review caused by a U.S. government shutdown. The company publicly submitted its IPO registration documents on Thursday. Reports indicate that the offering could raise more than $2 billion, with investors expecting PayPay’s valuation to exceed 3 trillion yen. The company plans to list on the Nasdaq under the ticker symbol "PAYP."

Originally scheduled for December of last year, PayPay’s IPO was postponed due to the longest U.S. government shutdown in history, which slowed the regulatory approval process. This IPO will mark the first U.S. listing of a majority-owned SoftBank investment since the high-profile debut of British chip designer Arm Holdings in 2023. SoftBank is currently monetizing assets to fund its expanding artificial intelligence initiatives.

Financial data shows that in the nine months ended December 31, PayPay recorded a profit of 103.3 billion yen (approximately $675 million) on revenue of 278.5 billion yen. This compares with a profit of 29 billion yen and revenue of 220.4 billion yen in the same period a year earlier.

Matt Kennedy, a senior strategist at Renaissance Capital, which specializes in IPO research and ETFs, commented, "These figures are very impressive. When we talk about high-quality companies deserving of premium valuations, PayPay certainly fits the bill. Very few companies demonstrate this level of growth and profitability." He added, "The U.S. IPO market needs a success story, and a strong debut from a large company like this would provide a boost, even if it tells a relatively unique Japanese fintech story."

Established in 2018 as a joint venture between SoftBank and Yahoo Japan, PayPay has played a significant role in advancing Japan’s digital transformation. The company offers cashback incentives through its mobile app to encourage consumers to reduce cash usage. In just over seven years, PayPay has expanded rapidly to become one of Japan’s most widely used payment platforms, with approximately 72 million registered users as of December 31.

While Japan was once known for its strong preference for cash, the adoption of cashless payments has risen significantly in recent years. However, compared to other countries, Japan still lags in payment technology, suggesting considerable room for growth.

Kennedy noted, "With the Nikkei 225 at historic highs, investor enthusiasm for Japanese equities is evident. I expect this to be the largest U.S. IPO by a Japanese company." Some analysts suggest that PayPay’s valuation may command a premium compared to U.S.-listed fintech peers, given its strong presence in the Japanese market and the accelerating shift toward cashless payments in the country. In addition to its initial focus on cashless payments, PayPay has since expanded into areas such as credit, banking, securities, and insurance.