- SoftBank is aiming to take PayPay public; Paytm may also get some stake in the app.
- PayPay is a payment app that uses QR (quick response) codes. It’s a collaboration between SoftBank and Yahoo Japan, with Paytm serving as a technology partner.
Paytm, an Indian digital payments company, assists PayPay, a Japanese payment app that multinational conglomerate SoftBank is planning to go public with. Paytm, based in Noida, may also acquire a stake in PayPay.
PayPay is a payment app that uses QR (quick response) codes. It’s a collaboration between SoftBank and Yahoo Japan, with Paytm serving as a technology partner. It was founded in June of this year. PayPay has over 40 million users and processes over 2 billion transactions a year.
At an earnings briefing, Junichi Miyakawa, who took over as CEO of SoftBank Corp last month, said, “We want PayPay to IPO in the future so that they can become independent.” “Instead of maintaining the dependent business model that they currently have, we want them to be self-sufficient. And I don’t think it’ll be too long before that happens.”
PayPay has grown 2.5 times year over year, according to SoftBank, and the company expects to keep up the pace. The merchant population has risen to 3.60 million. PayPay’s GMV (gross merchandise volume), an indicator of transaction volume, hit 3.2 trillion yen in the fiscal year ended March, according to SoftBank.
Yahoo Japan’s parent company, Z Holdings, will collaborate with PayPay to develop various companies. PayPay is expected to grow into a super app and a hub for the fintech ecosystem.
“PayPay Card, PayPay Bank,” says the narrator. “I say, a lot of partnerships have started,” Miyakawa said. “As a result, we’ll keep building on this.”
Softbank Group, the world’s largest investment firm, posted a $45.8 billion annual net profit on Wednesday. It is the best performance a Japanese corporation has ever achieved. It is reaping the benefits of tech stock rallies as it attempted to rebound from a record loss last year.
SoftBank’s $100 billion Vision Fund has backed top businesses in fields ranging from artificial intelligence to biotechnology. The spread of the pandemic (Covid-19) and the subsequent pandemic, which continues to this day, significantly impacted the global economic situation during the fiscal year. To combat the economic effects of this pandemic, governments around the world are introducing budgetary stimulus and monetary easing initiatives. Expectations that success in some countries’ vaccination programmes would spur further economic activity have resulted in a sharp market rebound in the second half of the fiscal year, with new money starting to flood in.
“The rapid adoption of digital services to counter the pandemic has had a positive effect on the technology market, where the Company focuses its investment strategies,” SoftBank said.
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