South African fintech Stitch has completed its second major acquisition in six months, purchasing digital payments company Efficacy Payments to strengthen its position as a comprehensive payments processor. The strategic move grants Stitch the coveted Designated Clearing System Participant (DCSP) status, making it one of the few fintechs in South Africa capable of handling card payments from start to finish.
The acquisition enables Stitch to offer direct card acquiring services to merchants without depending on intermediary banks or third-party processors. This end-to-end capability covers both online and in-person transactions, positioning Stitch as a rare full-stack payments provider in the South African market.
Building an Omnichannel Empire
This latest deal builds on Stitch’s January 2025 acquisition of ExiPay, which has since been rebranded as “Stitch In-Person Payments.” Together, these acquisitions create a comprehensive payments ecosystem that spans from point-of-sale systems to backend reconciliation processes.
“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, recon capabilities and access to the latest technology,” explained Stitch President and Co-founder Junaid Dadan. “We’re excited to see the impact this will have on the way our merchants collect card payments from their customers.”
Rare DCSP Status Powers Integration
Founded in 2016, Efficacy Payments achieved a significant milestone in 2021 when it became only the second fintech in South Africa to receive DCSP designation. This status allows the company to participate directly in the country’s card clearing system, bypassing traditional banking intermediaries.
By integrating Efficacy’s capabilities, Stitch can now function as a gateway, switch, and acquirer simultaneously. This consolidated approach eliminates typical friction points and failure risks associated with multi-provider payment chains.
Enhanced Merchant Benefits
The integration promises substantial improvements for enterprise merchants, including:
- Improved conversion rates through optimized message routing
- Real-time transaction visibility for better monitoring and control
- Reduced processing fees by eliminating intermediary costs
- Custom reporting and reconciliation with flexible timelines
- Streamlined operations through single-provider management
Strong Financial Backing Fuels Growth
Stitch’s acquisition strategy is supported by robust funding. The company raised $55 million in Series B funding in April 2025, bringing its total capital raised to $107 million. This financial foundation enables Stitch to scale its full-stack payments infrastructure while expanding its product offerings across the African continent.
The combined entity positions Stitch as a formidable player in South Africa’s competitive fintech landscape, offering merchants a comprehensive alternative to traditional banking partnerships for payment processing needs.
