Merged Deal: Stitch Takes Over Efficacy Payments, Gaining Direct Card Processing Capabilities in South Africa
In the bustling landscape of South Africa's digital payments market, a significant shift is underway. The payments infrastructure company, Stitch, has made a series of strategic acquisitions that are set to strengthen its position and challenge the dominance of traditional players.
Stitch, a South Africa-based fintech company, recently acquired Efficacy Payments, a digital payments startup, and ExiPay, expanding its reach into point-of-sale infrastructure. This move allows Stitch to offer a comprehensive suite of digital and in-person payment services, including gateway, switching, and acquiring, under one roof.
The acquisition of Efficacy Payments is particularly noteworthy as it gives Stitch control over every layer of the card payment stack. Efficacy Payments became a Designated Clearing System Participant (DCSP) in 2021, making it the second fintech in South Africa licensed to clear card payments directly. This role will enable Stitch to process in-store and online card payments on behalf of merchants with fewer intermediaries.
The strategic acquisitions come at a time when the South African card payments market is experiencing significant growth. According to GlobalData, the market is projected to reach approximately R2.9 trillion ($159 billion) in 2025. This growth is driven by increasing adoption of electronic payments, facilitated by initiatives like the South African Reserve Bank's Vision 2025, which aims to modernize the country's payment landscape.
Junaid Dadan, President and Co-founder at Stitch, expressed excitement about the impact of the acquisitions on the way Stitch's merchants collect card payments from their customers. He believes that the integration will lead to faster settlements, real-time transaction visibility, and fewer reconciliation headaches for Stitch's clients, which include leading South African enterprises such as Takealot, Mr. D, MTN, Vodacom, Hollywoodbets, and Standard Bank's Shyft.
The acquisitions mark Stitch's second major strategic move. In 2021, the company was founded and has since raised a total of $107 million, including a $55 million Series B round in April 2025. With these resources, Stitch is now one of the first fintechs in South Africa to offer end-to-end card-acquiring services without relying on banks or third-party processors.
Looking ahead, the South African card payments market is expected to continue its expansion, driven by regulatory support, technological innovation, and increasing consumer preference for digital transactions. As Stitch continues to make strategic moves, it is well-positioned to play a significant role in this growth.
In other news, Stitch's event, Moonshot, is returning to Lagos on October 15-16. Early bird tickets are now available with a 20% discount. For more information, visit Stitch's website.
- The fintech company, Stitch, aims to disrupt traditional players in South Africa's digital payments market as it strengthens its position through acquisitions of Efficacy Payments and ExiPay, extending its reach into point-of-sale infrastructure and offering a comprehensive suite of digital and in-person payment services.
- The acquisition of Efficacy Payments, now a Designated Clearing System Participant (DCSP) in 2021, empowers Stitch to process card payments directly on behalf of merchants, streamlining transactions and reducing intermediaries.
- With these strategic acquisitions, fundraising, and innovative technology at its core, Stitch anticipates continuing growth in the South African card payments market, aligning with the country's Vision 2025 to modernize its payment landscape and thriving on increasing consumer preference for digital transactions.
