Stitch Fortifies Payments Infrastructure in South Africa with Efficacy Payments Acquisition
Stitch, a prominent payments infrastructure company based in South Africa, has significantly expanded its capabilities by acquiring Efficacy Payments. This strategic move allows Stitch to become a direct card processor, a pivotal step towards dominating the burgeoning digital payments landscape in the country. This acquisition provides Stitch with direct control over the entire card payment processing chain, setting it apart as one of the first fintechs in South Africa to offer comprehensive card-acquiring services independently, without relying on traditional banks or third-party processors.
Gaining Control of the Payments Ecosystem in a Growing Market
The acquisition of Efficacy Payments, a digital payments startup with direct access to South Africa’s national clearing system, is a landmark moment for Stitch. Efficacy Payments, founded in 2016, achieved Designated Clearing System Participant (DCSP) status in 2021, making it the second fintech in South Africa to gain direct clearance capabilities for card payments. By integrating Efficacy Payments, Stitch will now assume this role, thus enabling it to manage both in-store and online card transactions for merchants. This is Stitch’s second major strategic acquisition, strengthening its position in a market experiencing significant growth. According to estimates from GlobalData, the South African card payments market is projected to reach a staggering R2.9 trillion ($159 billion) by 2025, highlighting the immense potential and significance of Stitch’s advancements in the region.
Keywords
Related Keywords: Stitch Efficacy Payments acquisition, Stitch direct card processing, Efficacy Payments acquired by Stitch, Stitch payment processing, direct card processor, payment processing acquisition, fintech acquisitions, Stitch payments, card processing, financial technology
