Stitch Acquires Efficacy Payments to Offer Direct Card Acquiring
TLDR
- South African payments infrastructure startup Stitch has acquired Efficacy Payments, enabling it to offer direct card acquiring services
- The move positions Stitch among the first local fintechs to provide end-to-end card processing both online and in-person
- The company has raised $107 million, including a $55 million Series B round in April 2025
South African payments infrastructure startup Stitch has acquired Efficacy Payments, enabling it to offer direct card acquiring services as a Designated Clearing System Participant (DCSP). The move positions Stitch among the first local fintechs to provide end-to-end card processing both online and in-person.
Founded in 2021, Stitch offers API-based payments infrastructure that helps businesses streamline operations and scale efficiently. The company has raised $107 million, including a $55 million Series B round in April 2025. Its expansion into card acquiring builds on its earlier acquisition of ExiPay, part of its push into in-person payments.
Efficacy, launched in 2016, became a DCSP in 2021—only the second fintech in South Africa to earn the designation. This acquisition gives Stitch full control over card transaction flows, from authorization to settlement. “With Efficacy, we’re improving conversion, reconciliation, and access to modern card tech for our merchants,” said Junaid Dadan, Stitch co-founder and president.
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Points clés à retenir
Stitch’s acquisition of Efficacy marks a strategic step toward full-stack payments infrastructure ownership in South Africa. As a DCSP, Stitch can bypass intermediaries, cut costs, and offer greater control and transparency to merchants, improving margins and customer experience. The move reflects a broader trend among African fintechs: building vertically integrated infrastructure to improve speed, reliability, and cost in payment flows. With this acquisition, Stitch strengthens its position in South Africa’s R500 billion+ card payments market while aligning with merchant demand for unified online and offline payment solutions. It also signals growing maturity in the region’s fintech ecosystem, where firms are evolving from aggregators to infrastructure providers, driving competition with traditional banks and global processors.
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