PayPay IPO surges 18% in second trading day, ARK buys shares

Investing.com -- PayPay Corp (NASDAQ: PAYP) extended its Nasdaq debut rally Friday, surging 18.34% to $21.49 and bringing the SoftBank-backed digital payments platform 34% above its $16 IPO price in just two trading sessions.

The sharp gains came as ARK Invest disclosed Thursday it purchased 275,000 shares of PayPay through its fintech-focused ETF on the company's March 12 debut day, a $4.4 million bet that signals early institutional confidence in Japan's leading payments platform.

PayPay's $3.33 per-share gain Friday capped a strong two-day run that began Wednesday when shares opened at $19—already 18.75% above the IPO price—and closed at $18.16. The momentum reflects growing investor appetite for profitable fintech platforms amid a year expected to bring increased IPO activity in the sector, driven by regulatory clarity and lower interest rates making capital more accessible.

"The appeal of the company is that it's one of the few fintech IPOs that have already won its domestic market," said Muehlbauer, an analyst quoted in Reuters coverage. "The domestic strength gives the company some insulation from the geopolitical, tariff and AI-related concerns weighing on many other technology names."

The company raised approximately $880 million in its offering, which was priced at $16 per share—below the marketed range of $17-$20—valuing PayPay at roughly $14.71 billion. The conservative pricing strategy appears to have paid off, creating the kind of aftermarket momentum that analysts say could support future secondary offerings, a key consideration for majority owner SoftBank.

ARK's strategic bet on fintech dominance

The purchase by ARK Fintech Innovation ETF (ARKF), led by Cathie Wood, came on PayPay's first trading day when shares closed at $18.16. The timing signals early confidence from one of fintech's most prominent institutional investors in a platform that has expanded from cashless payments into credit, banking, securities and insurance to become Japan's dominant digital payments player.

ARK's fintech ETF posted a 30% return in 2025, outperforming by incorporating AI-driven platforms like Palantir (up 130%) and Roku (up 46%) alongside traditional payment companies, according to LinkedIn data. The fund gained 1.04% Friday to close at $40.36. Fintech peers also traded higher, with Affirm Holdings (AFRM) rising 1.96% to $47.29 and PayPal (PYPL) adding 0.88% to $44.75.

SoftBank's first major U.S. listing since Arm

The IPO represents SoftBank's first U.S. listing of a majority investment since chip designer Arm's blockbuster 2023 offering. Originally scheduled for December 2025, the offering was delayed after a U.S. government shutdown stalled regulatory review, according to Reuters.

PayPay announced a partnership with Visa in February 2026 as it looks to expand into the U.S. market, a move that could significantly broaden its addressable market beyond Japan, where digital payment adoption continues to lag global peers. Japan remains a global laggard in payments technology, leaving ample runway for growth as digital adoption accelerates.

What to watch

Investors should monitor several key factors as PayPay establishes itself as a public company:

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  Trading volume and volatility as the post-IPO price discovery process continues in coming weeks

  
  


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  Additional institutional disclosure filings revealing other major investors who participated in the IPO

  
  


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  Analyst coverage initiation expected in early-to-mid April when the quiet period ends (typically 25-40 days after IPO), bringing formal price targets and additional catalysts

  
  


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  U.S. expansion progress following the Visa partnership announcement, including any merchant adoption metrics or revenue contribution from international markets

  
  

PayPay's first earnings report as a public company, expected in late Q2 2026 for Q1 results, will provide the first test of its growth narrative and profitability trajectory. The report will be closely watched as a bellwether for 2026's expected surge in fintech IPO activity.

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