Payments infrastructure company Stitch has announced the acquisition of Efficacy Payments, marking its second major strategic move to date. This acquisition enables the fintech to offer direct card acquiring services to merchants as a Designated Clearing System Participant (DCSP), supporting more efficient, scalable, and cost-effective transactions across South Africa.
With this move, Stitch becomes one of the first fintechs in the country to provide direct card clearing services—both online and in-store—strengthening its omnichannel capabilities and delivering greater value to enterprise clients. The integration of Efficacy brings the group closer to its goal of simplifying payments infrastructure and offering broader access to modern financial tools.
As a DCSP, the company can offer a full-stack card acquiring product, with control over the entire lifecycle—from authorisation and settlement to reconciliation and reporting. This control allows for tighter service integration, improved reliability, and reduced transaction costs for merchants.
The group’s acquisition model is fully integrated:
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Gateway, switch, and acquirer in one – Enterprises benefit from working with a single provider that manages everything from compliance to technical onboarding and transaction processing.
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Direct connections to Visa and Mastercard – By bypassing intermediary banks and third-party switches, potential failure points are removed, increasing efficiency and uptime.
Tangible Benefits for Enterprise Merchants
This expanded capability translates into significant advantages for enterprise merchants, particularly those operating across multiple channels:
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Improved conversion rates – By optimising how transaction messages are routed through card networks, merchants can expect higher payment success.
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Faster feature rollouts – With reduced dependency on external banks and vendors, the company gains greater agility in launching new products and updates.
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Real-time reconciliation and reporting – Clients get instant visibility into payments and fees, with the ability to customise reports at daily, weekly, or monthly intervals.
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Lower operational costs – Consolidating services with one provider lowers fees and minimises the internal resources required for managing fragmented reconciliation processes.
“We’re excited to welcome the Efficacy team into the group and offer this critical solution to the merchants we work with,” said Junaid Dadan, President and Co-founder at Stitch. “Card processing is an essential requirement for businesses in South Africa, and we’ve identified key areas for improvement—particularly in conversion, reconciliation, and access to modern technology. We believe this acquisition will drive meaningful impact.”
About Efficacy and Strategic Fit
Founded in 2016, Efficacy earned its DCSP designation in 2021, becoming only the second fintech in South Africa to reach this milestone. Its proven infrastructure, licensing credentials, and experience in the local payments ecosystem make it a natural addition to the acquiring ambitions of its new parent company.
This acquisition follows Stitch’s purchase of ExiPay in January 2025, which enabled the business to expand from online payments into in-person commerce. With both companies now integrated, Stitch offers a truly omnichannel platform, equipping telcos, multi-lane retailers, and digital-first brands with the ability to streamline customer payments across all environments.
The company, which launched from stealth in February 2021, has grown rapidly sinceits inception. To date, Stitch has raised $107 million in funding, including a $55 million Series B round announced in April 2025. These funds have supported the firm’s ongoing expansion and the development of infrastructure to support a broader range of payment services.
Today, the organisation serves a growing portfolio of enterprise clients across sectors, helping them modernise payment systems, enhance user experiences, and gain operational efficiencies. The addition of direct acquiring capabilities only strengthens its ability to support merchants at scale.
About Stitch
Stitch is a payments infrastructure company that enables businesses to connect seamlessly to the financial system. Headquartered in Cape Town, South Africa, it supports both online and in-person payments. Its platform includes pay-in methods, payment orchestration tools, financial data solutions, and payouts—all designed to help clients optimise operations and deliver better customer experiences. Learn more at stitch.money.
