SoftBank intends to introduce PayPay, its digital payment service, into the competitive American market.
PayPay, the dominant Japanese digital payments platform, is making waves in the global market. The company, owned by SoftBank, has been a powerhouse in Japan since its launch in 2018, processing over 7.8 billion payments in fiscal year 2024. In the domestic code payments sector, PayPay claims two-thirds of the market share. Last year, one in every five cashless payments in Japan was made via PayPay.
However, the company's footprint is yet to be significant in the U.S., a market already saturated with major players like Zelle and Venmo. PayPay is planning to enter this competitive market, aiming to replicate its success in Japan. As of now, U.S. payers for PayPay are negligible or non-counted since they are preparing to launch comprehensively.
In the U.S. mobile peer-to-peer (P2P) payments market for 2025, Zelle holds the largest share with about 54.6% of mobile P2P volume, followed by Venmo at 20.5%. PayPay has not yet established a measurable market share in the U.S. [1][3]
Zelle is the dominant U.S. mobile P2P payment platform, integrated into over 2,200 banks and credit unions, with over 150 million users, and expected to command over half (54.6%) of the mobile P2P transaction volume in 2025. Venmo, owned by PayPal, has around 90 million users and is projected to hold approximately 20.5% of the mobile P2P volume by 2025. [1][3][5]
Venmo is generating around $1.15 billion in net revenue in 2024 and aims for $2 billion annually by 2026. [1][2] The discrepancies between sources on Venmo’s share arise from whether they refer strictly to mobile P2P volume or broader P2P transaction market share. [1][2]
In a bid to expand its services and develop cross-border payment solutions, SoftBank is planning an initial public offering (IPO) for PayPay. Analysts estimate the IPO could value the company between $10 billion and $12 billion. The funds raised from the IPO will be used to invest in AI-driven financial products.
SoftBank has already taken a step towards global expansion by offering its employees direct salary payments to PayPay's digital wallet, making it the first Japanese company to do so. The PayPay IPO may raise more than $2 billion from investors.
As PayPay prepares to enter the U.S. market, it has also formed strategic partnerships to strengthen its position. It has partnered with Alipay+, Ant International's mobile payment offering, to expand its ability to handle cross-border payments for international visitors to Japan. PayPay has also partnered with Filipino payment service GCash.
With its strong presence in Japan and strategic partnerships, PayPay is well-positioned to make a mark in the global digital payments market. As it enters the U.S. market, it will face stiff competition but is ready to take on the challenge.
| Platform | Mobile P2P Market Share (2025, %) | U.S. User Base (millions) | |----------|-----------------------------------|---------------------------| | Zelle | 54.6% | 150+ | | Venmo | 20.5% | 90 | | PayPay | Near 0% (pre-launch/entry phase) | N/A |
[1] - Source: Statista [2] - Source: Business Insider [3] - Source: TechCrunch [5] - Source: The Financial Times
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