Stitch Fortifies Payment Dominance in South Africa with Strategic Acquisition
South African fintech giant, Stitch, is rapidly solidifying its position as a dominant player in the country’s payments infrastructure. The company has just acquired Efficacy Payments, a digital payments startup with direct access to South Africa’s national clearing system. This strategic move underscores Stitch’s ambition to control every facet of the card payment pipeline and offers significant implications for the future of financial technology in Africa.
Stitch Grabs Control of the Entire Payment Process
The acquisition of Efficacy Payments is a significant coup for Stitch. It grants them direct access to South Africa’s national clearing system, a privilege typically reserved for licensed banks and a small number of large processors. This crucial access allows Stitch to directly manage the movement of money between banks. The benefits are substantial: faster payment settlements, minimized reliance on third-party intermediaries, and increased control over the entire payment process. Following their previous acquisition of ExiPay, this latest move makes Stitch one of the few fintech companies in South Africa, alongside the likes of Adumo, that can now handle the entire card acquiring process, from the payment gateway to switching and settlement. This comprehensive control positions Stitch to offer more efficient and streamlined payment solutions, potentially disrupting the existing payment landscape within South Africa and, by extension, other African markets.
The acquisition of Efficacy is a strategic move for Stitch, positioning them as a formidable player in South Africa’s payment infrastructure.
Keywords
Related Keywords: TechCabal Daily, African tech news, TechCabal, efficacy, saves nine, African startups, technology in Africa, daily newsletter, tech news, business in Africa
