Rakuten weighs US IPO for credit card unit: sources

Rakuten is considering a possible IPO of its credit card business in the US, according to two sources familiar with the matter.

The Japanese ecommerce and finance group reportedly began weighing the move last month, with options still at an early stage.

Alternatives such as a stake sale are also under review, with one source saying SoftBank’s plans to list PayPay in the US influenced Rakuten’s thinking.

Mizuho Financial Group bought a 15% stake in Rakuten Card for US$1.1 billion last year, valuing the unit at over US$7 billion.

Rakuten Card has issued more than 30 million cards in Japan and saw its non-GAAP operating profit rise 20% to 62 billion yen last year, but fall 4.5% in Q2 2025 due to higher costs.

Rakuten listed its banking arm in Tokyo two years ago and plans to list Rakuten Securities, as the US IPO market recorded US$24 billion in new listings in Q3 2025, its busiest period since late 2021.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Rakuten Card’s own financials stay murky despite its central role in the group

Rakuten Card has issued over 30 million credit cards and booked 62 billion yen in non-GAAP (metrics not based on standard accounting rules) operating profit in 2024. Investors still lack its standalone numbers on receivables growth/charge-offs (loans written off as uncollectible)/delinquencies (late payments)/funding mix (sources of financing)/cost of funds (interest with related funding expenses)/capital ratios (loss-absorbing buffers), which masks credit risk ahead of a possible U.S. IPO.
Profit fell 4.5% in Q2 2025, as costs rose. Management has not said whether the pressure came from customer acquisition, credit losses, or funding.
Mizuho put in 165 billion yen for a 15% stake, which implied a value above 1 trillion yen. A U.S. listing may not clear that bar until the company releases fuller financial detail.

Japanese fintechs eye U.S. IPOs and boost demand for listing prep services

PayPay could file in the U.S. as early as December 2025, and Rakuten Card is weighing an offering. That pipeline opens work for vendors that handle U.S. Securities and Exchange Commission (SEC)/eXtensible Business Reporting Language (XBRL) reporting conversion. They also set up Sarbanes-Oxley Act (SOX) compliance implementation. Public Company Accounting Oversight Board (PCAOB) audit support and U.S. investor relations round out the list.
Advisory firms and auditors can build prospect lists of Japanese financial technology companies planning U.S. listings. Target leaders such as PayPay in QR-code payments (smartphone-scannable codes) in Japan or Rakuten Card, and time outreach for early planning phases when demand peaks.
Companies raised $24 billion in U.S. IPOs in Q3 2025, and fintech issuance has picked up. B2B service firms can use this window to form partnerships with Japanese financial technology companies preparing for cross-border listings.