South African payments infrastructure company Stitch Group acquired Cape Town-based Efficacy Payments to expand card acquiring services and enhance merchant payment solutions.
The acquisition enables Stitch to offer direct card acquiring services as a Designated Clearing System Participant, including card clearing for both online and in-store transactions. Financial terms were not disclosed.
Efficacy Payments, founded in 2016, has operated as a designated clearing system participant since 2021, specializing in card acquiring and cash deposit solutions. The integration will provide improved conversion rates and cost savings for merchants.
“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,” stated Stitch president and co-founder Junaid Dadan.
The acquisition represents Stitch’s second major purchase following its January deal to acquire Dutch paytech ExiPay, which added in-person payment capabilities to the company’s online solutions suite.
Stitch secured $55 million in Series B funding led by QED Investors in April, bringing total funding to $107 million. The capital supports expansion plans and technology integration efforts across acquired companies.
Benefits of the Efficacy integration include real-time reporting and reconciliation capabilities, faster access to new products and features, and enhanced payment processing efficiency. These improvements support Stitch’s comprehensive payment infrastructure strategy.
The combined entity will leverage Efficacy’s clearing system participation status to offer more competitive merchant services. Direct card clearing capabilities reduce dependency on third-party processors and improve transaction economics.
South Africa’s digital payments sector continues attracting investment as fintech companies expand service offerings and geographic reach. The acquisition strengthens Stitch’s position in the competitive payments infrastructure market.
Technology integration between Stitch and Efficacy will enhance merchant onboarding processes and payment acceptance capabilities. The combined platform aims to provide seamless payment experiences across multiple channels and transaction types.
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