PayPay might start working with Visa to grow its business in the U.S., the Japanese payments company said Thursday.

The SoftBank Group subsidiary, which provides a smartphone QR code payment service, said it is considering the formation of a new company with Visa ¡ª which is headquartered in Foster City, California and is the world¡¯s largest payments network by transaction volume.

This would be PayPay¡¯s first move overseas.

PayPay chief Ichiro Nakayama declined to elaborate on the plan during a news conference Thursday in Tokyo, saying many details are still under discussion. PayPay named California as one of its target markets, but it is still unsure about the timing of its entry.

Nakayama said the U.S. may be ahead of Japan in going cashless, but mobile payment volume is still expected to grow significantly in the market. Annual consumer spending in the U.S. is about $20 trillion, $2 trillion of which is in cash.

¡°We believe there is potential for us,¡± Nakayama said.

Jack Forestell, Visa¡¯s chief product and strategy officer, said Visa is excited to work with PayPay, which he says has brought innovation to Japan¡¯s payments market.

PayPay will likely need to come up with some unique points to differentiate itself from existing mobile payment players in the United States, such as PayPal.

¡°I have a lot of confidence in Nakayama-san and the PayPay team to find those points along the way,¡± Forestell said.

PayPay and Visa are also planning to work together more closely in the Japanese market to provide a more seamless purchasing experience for both networks.

PayPay has led in QR code payments in Japan since its inception in 2018. It now has about 72 million registered users in the domestic market, according to the company.

In August last year, PayPay submitted an application to securities regulators for a public listing in the United States.