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July 12.2025

2 Minutes Read

Stitch's Acquisition of Efficacy Payments: A Game Changer in South Africa's Fintech Landscape

Smartphone with checkout screen against orange background, Stitch Acquires Efficacy Payments.

Stitch's Bold Move to Direct Card Processing in South Africa

In a significant step for the South African fintech landscape, Stitch has announced its acquisition of Efficacy Payments. This move not only enhances Stitch’s capabilities but marks its position as one of the premier players in the digital payments sector, providing comprehensive card-acquiring services independent of banks or third-party processors.

Expanding Horizons in a Booming Market

The deal comes as the South African card payments market is projected to reach R2.9 trillion (approximately $159 billion) by 2025, according to GlobalData. With Efficacy Payments' status as a Designated Clearing System Participant, Stitch will be able to directly clear card transactions, thereby cutting reliance on external entities and allowing for faster and more efficient services to merchants.

Enhanced Services for Merchants

Stitch aims to streamline the card payment process for its clients, which includes major companies like Takealot and MTN. By consolidating services such as gateways and switching with acquiring, Stitch is poised to deliver a more cohesive and effective payment solution. This is further highlighted by Junaid Dadan, President and Co-founder at Stitch, who notes the potential for improved conversion rates and recon capabilities for businesses involved.

Shaping the Future of Payments in Africa

The acquisition reflects a broader trend within the African fintech space where local startups are seeking to reduce their vulnerability to financial institutions while enhancing operational efficiency in payment processing. Stitch's last strategic acquisition of ExiPay laid the groundwork, and now with Efficacy, the company is set for an exciting growth trajectory.

What This Means for the South African Economy

As Stitch integrates these capabilities, South Africa's economy stands to benefit from increased efficiencies in digital payments. Enhanced visibility into real-time transactions can foster trust and reliability, crucial elements that can drive consumer spending and business growth in a rapidly evolving financial landscape.

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Stitch's Acquisition of Efficacy Payments: A Game Changer in South Africa's Fintech Landscape

Stitch's Bold Move to Direct Card Processing in South Africa

Expanding Horizons in a Booming Market

Enhanced Services for Merchants

Shaping the Future of Payments in Africa

What This Means for the South African Economy

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