South African fintech firm Stitch has announced the acquisition of Efficacy Payments, marking a strategic expansion of its payments infrastructure and capabilities. The move positions Stitch to directly offer card acquiring services to merchants as a Designated Clearing System Participant (DCSP), enhancing its end-to-end payments offering.

With this acquisition, Stitch aims to streamline the way merchants process card transactions by delivering improved conversion rates, enhanced reconciliation capabilities, and access to advanced payment technologies.

“We’re thrilled to welcome the Efficacy team into the Stitch Group,” said Junaid Dadan, President and Co-founder of Stitch.

“Card processing is a fundamental requirement for businesses in South Africa, but it’s long been an area ripe for innovation. This acquisition allows us to deliver more seamless, cost-effective card payment solutions to the merchants we serve.”

Founded in 2016, Efficacy became South Africa’s second fintech to be recognised as a DCSP in 2021. Its integration into Stitch strengthens the company’s infrastructure and regulatory positioning in the financial services ecosystem.

This marks Stitch’s second major acquisition, following its purchase of ExiPay in January 2025. That earlier move enabled the company to diversify from its core online payments platform into the in-person payments space.

Stitch, which came out of stealth mode in February 2021, has now raised a total of $107 million in funding. This includes a $55 million Series B round secured in April 2025, underscoring strong investor confidence in its growth strategy and market potential.