South African payments infrastructure startup Stitch has acquired local card clearing firm Efficacy Payments, marking its second major acquisition in under a year.
The deal positions Stitch as a Designated Clearing System Participant (DCSP), enabling it to process card payments directly for merchants, both online and in-person, without relying on third-party intermediaries.
This strategic move is set to improve transaction efficiency and reduce payment costs for businesses across the country.
“We’re excited to welcome the Efficacy team into the Stitch Group and offer this critical solution to the merchants we work with.
Card processing is an essential requirement for businesses in South Africa, and we’ve seen a lot of room for improvement when it comes to conversion, reconciliation capabilities, and access to the latest technology.
We’re excited to see the impact this will have on the way our merchants collect card payments from their customers,” said Junaid Dadan, president and co-founder at Stitch.
About Stitch and What They Do
Headquartered in Cape Town, South Africa, and serving clients across Africa, Stitch initially launched as Stitch Money in 2019 and formally emerged from stealth in February 2021. It was founded by Kiaan Pillay (CEO), Priyen Pillay (CTO), and Junaid Dadan (President).
Stitch enables businesses to accept and send payments online, in-person, and on a recurring basis, connected to cards, bank accounts (Capitec Pay, Absa, Nedbank), digital wallets (Apple, Google, Samsung Pay), manual EFT, cash, and even cryptocurrency.
In terms of unified commerce, brands can manage both online and physical sales seamlessly via Stitch Express (formerly WigWag), which is plugin-ready for e-commerce platforms like Shopify, WooCommerce, Webflow, and Squarespace.
Stitch has rapidly scaled as a provider of payments APIs and tools that simplify how businesses connect to the financial system. The startup has raised $107 million in funding to date, including a $55 million Series B round in April.
Stitch’s Expansion and Capacity Building
Stitch has evolved from a bank‑API startup into a powerhouse fintech, offering end-to-end payment solutions, from cards and bank APIs to in-person devices, all under one roof. With aggressive funding, strategic acquisitions, and AI‑powered backend systems, the company is reshaping how African businesses move money.
In January 2025, Stitch acquired ExiPay, a point-of-sale payment platform, to expand its in-person payment capabilities. The deal marked Stitch’s entry into the hardware-agnostic retail space, enabling merchants to accept card and digital wallet payments using any device.
Now, in July 2025, it has acquired Efficacy Payments, making Stitch one of the first fintechs in South Africa to handle direct card clearing with full lifecycle control.
These acquisitions highlight Stitch’s ambition to reshape South Africa’s digital payments landscape with greater autonomy and speed.
Why It Matters
Experts describe this as a major development, as Stitch is becoming a one-stop shop for payments in South Africa. By owning more of the payment chain, it is positioning itself as a serious player capable of offering better services to businesses of all sizes.
This is evident as Stitch’s president, Junaid Dadan, believes the move will improve how South African businesses handle card payments, making the process more reliable and aligned with modern technologies.
Talking Point
Stitch’s acquisition of Efficacy Payments highlights a smarter approach to tech development: acquiring struggling startups instead of letting them shut down. In fast-evolving sectors like fintech, such acquisitions preserve valuable assets, like licenses, infrastructure, and domain expertise, that would otherwise be lost.
Rather than starting from scratch, thriving startups can accelerate growth, strengthen market position, and maintain ecosystem momentum by absorbing what works from failing ventures. This not only recycles innovation but also ensures continuity and resilience within the broader tech landscape
