Stitch acquires Efficacy Payments to become a direct card processor in South Africa

Stitch, the South Africa-based payments infrastructure company, has acquired Efficacy Payments, a digital payments startup with direct access to the national clearing system. The acquisition gives Stitch control over every layer of the card payment stack, making it one of the first fintechs in South Africa to offer end-to-end card-acquiring services without relying on banks or third-party processors.

The deal, Stitch’s second major strategic acquisition, strengthens the company’s play for dominance in South Africa’s digital payments sector at a time when the market is booming. According to GlobalData, the South African card payments market is expected to hit R2.9 trillion ($159 billion) in 2025.

Founded in 2016, Efficacy Payments became a Designated Clearing System Participant (DCSP) in 2021, becoming the second fintech in South Africa licensed to clear card payments directly. Stitch will now assume that role, enabling it to process in-store and online card payments on behalf of merchants with fewer intermediaries.

“Card processing is an essential requirement for businesses in South Africa, and we have seen a lot of room for improvement when it comes to conversion, recon capabilities, and access to the latest technology. We are 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.

The move follows Stitch’s earlier acquisition of ExiPay, which expanded its reach into point-of-sale infrastructure. Together, the deals allow Stitch to offer a comprehensive suite of digital and in-person payment services, including gateway, switching, and now acquiring, under one roof.

With this integration, Stitch clients, which include leading South African enterprises such as Takealot, Mr. D, MTN, Vodacom, Hollywoodbets, and Standard Bank’s Shyft, can expect faster settlements, real-time transaction visibility, and fewer reconciliation headaches.

Founded in 2021, Stitch has raised $107 million to date, including a $55 million Series B round in April 2025.

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