Stitch Acquires Efficacy Payments, Becomes South Africa's First Fintech DCSP

Stitch, a leading fintech startup based in South Africa, has announced the acquisition of Efficacy Payments, a licensed digital payments company. This acquisition is Stitch’s second in 2025, following the purchase of ExiPay in January. The move positions Stitch as one of the first fintechs in South Africa to offer direct card acquiring services, a notable achievement in the region's payments landscape.

By acquiring Efficacy Payments, Stitch has secured the status of a Designated Clearing System Participant (DCSP). This designation allows the company to process both online and in-person card transactions independently, without relying on intermediary acquiring banks or third-party processors. This capability enables Stitch to manage the entire lifecycle of card payments, from the point of sale to backend reconciliation, thereby streamlining the process for merchants and eliminating friction points typically introduced by banks and third-party systems.

The integration of Efficacy Payments into Stitch’s infrastructure brings several benefits to enterprise merchants. These include improved conversion rates through message path optimization, real-time transaction tracking, and lower fees due to fewer intermediaries. Merchants will also have the ability to set up custom reporting and reconciliation timelines, reducing the time and resources spent managing multiple providers. This acquisition aligns with Stitch’s goal of creating an omnichannel infrastructure for retailers and large businesses, enhancing the overall payment experience for both merchants and consumers.

Stitch’s acquisition of Efficacy Payments is supported by a robust capital base. In April 2025, the company raised $55 million in Series B funding, bringing its total funding to $107 million. This financing is crucial for scaling Stitch’s full-stack payments infrastructure and expanding its product suite across Africa. The acquisition of Efficacy Payments further solidifies Stitch’s position as a key infrastructure player in Africa’s fragmented payments market, offering a unified platform that supports online, in-person, and card payment solutions for a diverse range of businesses.

The acquisition of Efficacy Payments is a strategic move that enhances Stitch’s capabilities in the payments space. By becoming a DCSP, Stitch can act as a gateway, switch, and acquirer, providing a seamless and efficient payment processing experience for merchants. This move is expected to significantly impact how businesses collect card payments, offering improved reconciliation, cost savings, and faster innovation. Stitch’s President and Co-founder, Junaid Dadan, expressed excitement about the potential impact of this acquisition, highlighting the room for improvement in card processing and the benefits it will bring to merchants.

In summary, Stitch’s acquisition of Efficacy Payments is a significant development in the South African fintech landscape. It positions Stitch as a leading player in the payments space, offering end-to-end card payment solutions and enhancing the overall payment experience for merchants. This strategic move is expected to drive innovation and efficiency in the payments industry, benefiting both businesses and consumers.