South African fintech Stitch acquires ExiPay to expand into in-person payments

Stitch, a South African fintech startup that provides online payments infrastructure for large enterprises, has acquired ExiPay, a startup that offers in-person payment solutions for retail businesses. The acquisition, for an undisclosed amount, will allow Stitch to integrate online and in-person payments into one platform, making it easier for businesses to track payments across different channels.

This move expands Stitch’s product offerings, allowing it to provide an omnichannel payment solution that combines online and in-person payment capabilities for its enterprise customers. The acquisition is a direct response to the growing demand for integrated payment solutions in South Africa’s retail market, where the gap between online and in-person payment systems remains significant.

Stitch has integrated ExiPay’s six-person team into its operations, rebranding the service as “Stitch In-person payments.” Stitch will sell this new service to existing clients, including major corporations like Bash, MTN, Cell C, and MultiChoice.

“The in-person payments space has not been disrupted for enterprises,” said Stitch CEO Kiaan Pillay. “Many players are doing this for smaller businesses in the market, but no one is tackling this for enterprises; it was the big reason we wanted to do this.”

Stitch’s decision to acquire ExiPay rather than partner with larger in-person payment providers reflects the company’s desire to retain control over its technology stack. According to Pillay, building a similar solution in-house would have taken 18 to 24 months, delaying the company’s strategy to offer a unified payment platform.

Founded in 2022 by Derek Keats and Willem Büchner, ExiPay allows physical stores to accept in-person payments through point-of-sale (POS) terminals. The company claimed it was processing R2 million ($106,000) in daily transactions in 2023. In 2024, it received €5.4 million ($5.6 million) in private cash-to-equity funding from Izwe Africa, a fintech group that provides credit to small businesses in Ghana, Kenya, and Zambia.

“This deal is attractive for both ExiPay and Stitch investors. We are sitting under one roof,” Pillay added.

Founded in 2019, Stitch has raised $52 million in funding, expanded into Nigeria, and has previously spoken of plans to expand into Kenya, Ghana, and Egypt.