SoftBank's PayPay Corp. has delayed the start of formal marketing for its US initial public offering, according to sources familiar with the matter. The Tokyo-based digital payments provider was expected to file its prospectus on Monday but cited market conditions for the postponement. The decision comes as global markets react to escalating Middle East tensions following US and Israeli airstrikes on Iran.

PayPay had been targeting a valuation exceeding $10 billion, though SoftBank founder Masayoshi Son had pushed for as much as $20 billion. The company, which launched in 2018 as a joint venture with Vision Fund-backed Indian payments company Paytm, quickly surpassed Rakuten Pay in Japan's competitive mobile payments market. With over 72 million users in Japan's population of roughly 123 million, PayPay has established itself as a dominant player.

The IPO, led by Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley, was set to debut on the Nasdaq Global Select Market under the symbol PAYP. The delay marks another challenge for SoftBank's Vision Fund portfolio companies seeking public market exits amid volatile conditions.