Stitch Buys Efficacy Payments to Deepen Card Services

South African fintech startup Stitch buys Efficacy Payments, a licensed digital payments company. This acquisition is Stitch’s second major purchase in just six months and is set to deepen its card services in the country. By buying Efficacy Payments, Stitch can now offer card acquiring services directly to merchants as a Designated Clearing System Participant (DCSP), a rare and important status in South Africa’s financial ecosystem.

This deal strengthens Stitch’s position in the payments space by allowing it to process both online and in-person card transactions without needing to rely on banks or third-party processors. This means Stitch can now clear card payments from start to finish, making the payment process smoother and more efficient for merchants. Stitch to deepen card services with this acquisition is a strategic step to reduce friction and failure points that normally happen when banks or third-party systems are involved.

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Earlier in January 2025, Stitch bought ExiPay, a company that helped it enter the in-store payment market. Stitch rebranded ExiPay to “Stitch In-Person Payments” to build a seamless payment infrastructure that works both online and offline for retailers and big businesses. Now, by adding Efficacy Payments, Stitch closes the gap on card payments, covering everything from the point of sale to backend reconciliation, offering a unified payment solution for merchants.

Junaid Dadan, Stitch’s President and Co-founder, explained that card processing is crucial for businesses in South Africa. He noted that there is a lot of room for improvement in how card payments are handled, especially in areas like conversion rates, reconciliation capabilities, and access to new technology. With this acquisition, Stitch aims to improve how merchants collect card payments, making the process easier and more reliable.

Efficacy Payments, founded in 2016, became the second fintech in South Africa to receive the DCSP designation in 2021. This status allows it to act as a gateway, switch, and acquirer in card payments. Stitch buying Efficacy Payments means the combined company can now manage the entire card payment process internally, without depending on external banks. This integration is expected to bring real benefits to enterprise merchants, such as better conversion rates through optimized message paths, real-time tracking of transactions, and lower fees because fewer middlemen are involved. Merchants will also gain more control with custom reporting and reconciliation schedules, saving time and resources that would otherwise be spent managing multiple providers.

Stitch’s ability to make these acquisitions is supported by its strong financial backing. In April 2025, the company raised $55 million in Series B funding, increasing its total funding to $107 million. This capital boost is helping Stitch expand its full-stack payments infrastructure and grow its product offerings across Africa.

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Since coming out of stealth mode in 2021, Stitch has quickly become a major player in Africa’s fragmented payments market. With the acquisition of Efficacy Payments, Stitch now offers a comprehensive platform that supports online, in-person, and card payment solutions. This makes Stitch a key partner for businesses ranging from telecommunications companies to large retail chains.

Stitch buys Efficacy Payments to deepen card services in South Africa, allowing it to provide direct card acquiring capabilities and improve the payment experience for merchants. This strategic move follows Stitch’s earlier acquisition of ExiPay and strengthens its position as a leading payments infrastructure provider in Africa. The integration of Efficacy Payments into Stitch’s platform promises better efficiency, lower costs, and enhanced control for merchants handling card payments.

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