Stitch acquires Efficacy Payments to expand in South Africa

By Vriti Gothi

Stitch has acquired Efficacy Payments to expand its capabilities as a designated clearing system participant, enabling it to offer card-acquiring services directly to merchants.

This acquisition positions Stitch as a designated clearing system participant (DCSP), empowering the company to offer card acquiring services directly to merchants and deliver more seamless, secure, and cost-efficient transactions.

Founded in 2016, Efficacy Payments became only the second FinTech in South Africa to achieve DCSP status in 2021, underscoring its pioneering role in advancing local payments infrastructure. By integrating Efficacy’s proven clearing capabilities into its suite of solutions, Stitch will unlock new possibilities for merchants to accept card payments with greater ease, transparency, and technological sophistication.

This acquisition marks Stitch’s second major expansion move, following its acquisition of ExiPay in January 2025, which extended its reach from online payments to in-person payments. Together, these developments strengthen Stitch’s market position as a comprehensive, modern payments partner for businesses of all sizes.

Since emerging from stealth in February 2021, Stitch has raised a total of $107 million, including its recent $55 million Series B round in April 2025. The company’s continued investment in best-in-class technology and infrastructure reflects its commitment to delivering innovative, customer-centric solutions that address the evolving needs of the digital economy.

Looking ahead, Stitch remains focused on broadening its product suite, deepening its technical capabilities and driving financial inclusion through accessible, high-performance payment solutions. The integration of Efficacy Payments is a testament to Stitch’s ambition to shape the future of payments in South Africa and beyond.

Junaid Dadan, President and Co-Founder at Stitch, said, “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. We’re excited to welcome the Efficacy team into the Stitch Group and deliver this critical solution to the merchants we serve. We look forward to seeing the impact this will have on how our clients collect card payments from their customers.”