Stitch acquires efficacy payments for direct acquiring

Stitch has announced the acquisition of Efficacy Payments, marking its second major strategic acquisition this year. Earlier, the company acquired ExiPay, enabling its entry into the in-person payments space

With the addition of Efficacy, Stitch now becomes one of the first fintechs in South Africa to offer direct card clearing for both online and in-person transactions.

The acquisition positions Stitch as a Designated Clearing System Participant (DCSP), empowering the company to offer card acquiring services directly to merchants. This advancement allows for more seamless and cost-effective transactions and further supports Stitch’s mission to serve a broader range of merchant payment needs.

By integrating Efficacy into its operations, Stitch gains full control over the card product lifecycle. As a DCSP, Stitch can now deliver a comprehensive end-to-end card acquiring solution, covering technical, compliance, financial, and operational requirements, under a single provider.

What this means for merchants:

• Stitch is the gateway, switch and acquirer: Merchants can rely on a single provider to handle the entire acquiring process, simplifying workflows and reducing the need for multiple systems or partners.

• Direct connectivity to Visa and Mastercard: Stitch's direct integration with card networks eliminates dependence on intermediary banks or switches, reducing the risk of transaction failures.

• Improved conversion rates: With optimised message routing across card networks, merchants can benefit from higher transaction success rates.

• Faster access to new features: Stitch’s reduced reliance on external banks and third parties accelerates product development and deployment for merchants.

• Real-time reporting and reconciliation: Merchants gain visibility into payment states and associated fees, with the ability to customise reporting and reduce reconciliation challenges.

• Cost savings: Consolidating services under one provider results in lower fees and reduced internal resource requirements for managing multiple payment interfaces.

“We’re excited to welcome the Efficacy team into the Stitch Group and offer this critical solution to the merchants we work with. 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. We’re excited to see the impact this will have on the way our merchants collect card payments from their customers,” Junaid Dadan, president and co-founder at Stitch.

Efficacy Payments was founded in 2016 and achieved its designation as a clearing system participant in 2021, becoming the second fintech in South Africa to do so. This acquisition enhances Stitch’s capabilities and reinforces its commitment to delivering innovative, full-stack payment solutions across the region.