Major Investors Line Up for SoftBank’s PayPay Stock Market Debut

International investment giants including Qatar Holdings, Visa, and Abu Dhabi Investment Authority are preparing to invest over $200 million in the upcoming U.S. stock market launch of PayPay, SoftBank's Japanese digital payments company. The company is seeking a valuation of up to $14 billion in what could become the largest Japanese company listing on American exchanges.

Several major international investment firms are positioning themselves to pour more than $200 million into the upcoming American stock market debut of PayPay, the Japanese digital payments company owned by SoftBank, according to sources with knowledge of the deal.

The investment group includes Qatar Holdings (part of the Qatar Investment Authority), payment giant Visa, and the Abu Dhabi Investment Authority, two individuals familiar with the situation revealed. These cornerstone investors are expected to help anchor what could become the largest Japanese company listing on U.S. stock exchanges.

PayPay is aiming for a market valuation reaching $14 billion through this offering, one source indicated. The company plans to begin trading on the Nasdaq exchange next month, though the original December timeline was pushed back due to a lengthy U.S. government shutdown that delayed regulatory approvals.

Sources requested anonymity since the details haven’t been made public yet. They emphasized that final agreements haven’t been signed, and both investment amounts and company valuation remain under discussion and subject to change.

Representatives from PayPay, SoftBank, Qatar Holdings, Visa, and ADIA have not responded to requests for comment. Reuters initially reported more than two years ago that SoftBank was exploring an American listing for PayPay.

This stock offering arrives at a crucial time for SoftBank Group, which has made artificial intelligence its primary focus. The Japanese technology conglomerate recently committed $30 billion to OpenAI, adding to approximately $41 billion it invested in December for an estimated 11 percent ownership stake, according to Reuters reporting.

To finance these AI investments, CEO Masayoshi Son has been selling off major assets, including the company’s $5.8 billion Nvidia holdings and $4.8 billion worth of T-Mobile U.S. stock. The PayPay public offering represents the first U.S. listing for a SoftBank-controlled company since Arm Holdings went public, potentially providing much-needed capital for the conglomerate.

Earlier this month, PayPay announced a new partnership with Visa as the Japanese payments firm looks to enter the American market.

Created through a joint venture between SoftBank and Yahoo Japan in 2018, PayPay has played a significant role in Japan’s shift toward digital payments, using mobile app rebates to encourage consumers to move away from traditional cash transactions. In just over seven years of operation, PayPay has become one of Japan’s most popular payment platforms, accumulating approximately 72 million registered users by the end of December.