Japanese e-commerce and financial services giant Rakuten is reportedly exploring an initial public offering (IPO) in the United States for its credit card business, according to sources familiar with the matter. The potential U.S. listing could mark a significant step for one of Japan’s largest credit card providers, signaling Rakuten’s ambitions to expand its financial footprint globally.

The discussions are currently in the early stages, with alternative options under consideration, including a possible stake sale to strategic investors. This move reflects a broader trend among Japanese companies seeking higher valuations in the U.S. capital markets.

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IPO Triggered by Rival Listings

One factor driving Rakuten’s consideration of a U.S. IPO is the planned U.S. listing of SoftBank’s PayPay app operator. The move by a direct competitor appears to have prompted Rakuten to explore a similar strategy for its credit card operations.

Although Rakuten has not publicly commented on the IPO plans, the company’s shares responded positively to the news, closing up 4.7%, significantly outperforming the Topix Index rise of 1.6% on the same day.

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Rakuten Card: A Key Pillar of the Business

Rakuten Card plays a central role in the conglomerate’s ecosystem, which spans online shopping, banking, travel, and other services. Customers earn loyalty reward points by using their Rakuten credit cards, creating a powerful incentive to stay within the group’s services.

The company has issued over 30 million credit cards in Japan, and its non-GAAP operating profit grew 20% to 62 billion yen last year. However, profits fell 4.5% in the April-June quarter of 2025 due to rising costs. Despite this, Rakuten Card aims to achieve 100 billion yen in profit over the medium term while expanding services to corporate clients, according to CEO Koichi Nakamura.

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Strategic Investments and Partnerships

In a significant strategic move last year, Mizuho Financial Group acquired a 15% stake in Rakuten Card for 165 billion yen ($1.1 billion), valuing the business at over 1 trillion yen ($7 billion). The two firms also launched joint credit card offerings, strengthening Rakuten’s market presence.

Rakuten previously listed Rakuten Bank in Tokyo, while also planning a listing for Rakuten Securities, with Mizuho injecting capital to support both businesses. These moves highlight Rakuten’s strategy of leveraging strategic partnerships and capital market listings to fuel expansion.

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Global IPO Market Context

The consideration of a U.S. IPO by Rakuten Card comes amid a strong global IPO market. Companies worldwide are increasingly looking to the U.S. for higher valuations, with the third quarter of 2025 seeing $24 billion raised through first-time share sales, marking the busiest quarter since late 2021, according to Dealogic.

As Japanese fintech and e-commerce companies continue to innovate and expand internationally, a successful U.S. IPO for Rakuten Card could further cement Rakuten’s position as a leader in digital financial services.