South African fintech Stitch has acquired Efficacy Payments, a licensed digital payments provider with direct access to the country’s national clearing system. This acquisition marks Stitch’s second major strategic move following its earlier purchase of ExiPay, and further cements the company’s ambition to become a comprehensive payments provider. By integrating Efficacy, Stitch becomes one of the first fintech companies in South Africa capable of offering end-to-end card acquiring services without relying on third-party banks or processors.
A Milestone in Local Fintech
Founded in 2016, Efficacy was designated a Designated Clearing System Participant (DCSP) in 2021, making it only the second fintech in the country to receive that designation. The acquisition now allows Stitch to assume that regulatory role, enabling it to clear both online and in-person card payments independently. This vertical integration is a major shift in South Africa’s financial services space, giving Stitch complete control over the card payment value chain—from gateway to switching to acquiring.
Benefits for South African Merchants
With this enhanced infrastructure, merchants working with Stitch will benefit from faster settlements, improved conversion rates, and real-time reporting and reconciliation tools. By removing intermediary banks and third-party processors, Stitch simplifies the transaction flow, which can lead to lower failure rates and operational costs. The result is a smoother, more efficient experience for large enterprises and SMEs alike.
Delivering Autonomy and Efficiency
As a DCSP, Stitch can now deploy new payment features and updates faster by avoiding delays typically introduced by legacy financial institutions. This independence allows for greater innovation speed, especially in a rapidly evolving payments landscape. According to Junaid Dadan, President and Co-founder of Stitch, this move is about providing better conversion and more modern technology for merchants, particularly in areas like reconciliation and customer experience.
Building a Unified Payment Stack
The acquisition builds on the foundation laid by the earlier integration of ExiPay, which enabled Stitch to enter the in-person payments space. Stitch now offers a complete suite of solutions under one roof—including gateway services, switching, and direct acquiring—streamlining what traditionally required partnerships across multiple vendors. With clients like Takealot, MTN, Vodacom, and Standard Bank’s Shyft, Stitch is well-positioned to handle high-volume enterprise demand.
Riding the Market Momentum
Stitch’s move comes at a time when the South African card payments market is experiencing significant growth. Industry analysts project the market will reach $159 billion by 2025, driven by the expansion of digital commerce and the demand for seamless financial services. Stitch’s expanded capabilities place it in a strong position to capture a larger share of this growing market.
Backed by Strong Capital
Founded in 2021, Stitch has raised $107 million to date, including a $55 million Series B round closed in April 2025. These funds have powered its aggressive growth strategy and ability to pursue high-impact acquisitions like Efficacy. The acquisition also reflects investor confidence in Stitch’s vision to lead innovation in Africa’s digital payments infrastructure.
With the acquisition of Efficacy Payments, Stitch has evolved into a full-stack payments provider capable of delivering unified, efficient, and cost-effective card solutions to merchants across South Africa. By removing intermediaries and leveraging its DCSP status, the company offers merchants greater speed, transparency, and control over their payment operations. This bold move signals Stitch’s readiness to shape the next phase of Africa’s fintech landscape.