Stitch, a prominent South African payments infrastructure startup, has strategically acquired Efficacy Payments, a significant move that will enable Stitch to offer direct card acquiring services as a Designated Clearing System Participant (DCSP). This acquisition positions Stitch among the first local fintechs to provide truly end-to-end card processing solutions for businesses, catering to both online and in-person transactions.

Efficacy Payments, founded in 2016, achieved DCSP status in 2021, becoming only the second fintech in South Africa to earn this crucial designation. This pioneering role in advancing local payments infrastructure underscores Efficacy's capabilities. By integrating Efficacy’s proven clearing capabilities into its suite of solutions, Stitch gains full control over the entire card transaction flow, from authorization to settlement. This vertical integration allows Stitch to bypass intermediaries, potentially cutting costs, and offering greater control, transparency, and improved margins to its merchants.

Founded in 2021, Stitch has rapidly grown as an API-based payments infrastructure provider, helping businesses streamline operations and scale efficiently. The company has demonstrated strong financial backing, having successfully raised a total of $107 million, including a substantial $55 million Series B round in April 2025. This latest acquisition builds upon Stitch’s previous strategic expansion, which included the acquisition of ExiPay in January 2025, a move that first extended its reach into in-person payment solutions. Together, these developments significantly strengthen Stitch's market position as a comprehensive and modern payments partner for businesses of all sizes across Africa.

The acquisition of Efficacy Payments has significant implications for the broader African fintech market. It reflects a growing trend among African fintechs to build vertically integrated infrastructure, aiming to improve speed, reliability, and cost-efficiency in payment flows. By consolidating its capabilities, Stitch strengthens its foothold in South Africa’s substantial R500 billion+ card payments market. This strategic alignment also addresses a critical merchant demand for unified online and offline payment solutions. Junaid Dadan, co-founder and president at Stitch, emphasized the immediate benefits for merchants, stating, "With Efficacy, we're improving conversion, reconciliation, and access to modern card tech for our merchants." He added, "Card processing is an essential requirement for businesses in South Africa, and we've seen significant opportunities to improve conversion, reconciliation and access to next-generation technology."

This strategic move by Stitch also signals a growing maturity within the region's fintech ecosystem, where firms are evolving from mere aggregators to comprehensive infrastructure providers. This evolution fosters increased competition with traditional banks and global processors, driving innovation and efficiency across the financial landscape. Looking ahead, Stitch remains committed to broadening its product suite, deepening its technical capabilities, and ultimately driving financial inclusion through accessible, high-performance payment solutions. The integration of Efficacy Payments is a clear testament to Stitch’s ambition to shape the future of payments in South Africa and beyond.