Card clearing platform Efficacy acquired by SA payments infrastructure startup Stitch
In order to offer card acquiring services directly to merchants as a Designated Clearing System Participant (DCSP) and facilitate more seamless and economical transactions, South Africa-based payments infrastructure company Stitch has made its second acquisition by purchasing card clearing platform Efficacy Payments.
Stitch is a payments infrastructure company that was founded in February 2021 and assists companies in increasing their operational efficiency and scaling. Businesses from a variety of industries can connect to the financial system with less effort and provide their users with enjoyable experiences thanks to the Stitch payments API and tools.
The startup, which announced its US $55 million Series B in April, has raised a total of US $107 million in funding over the last four years and is concentrating on growing its in-person payments solution. This commitment to serving customers across a wider range of their payment needs is demonstrated by Stitch’s recent acquisition of ExiPay and its subsequent acquisition of Efficacy, which will make it one of the first fintechs in South Africa to offer direct card clearing both online and in-person.
Launched in 2016, Efficacy became the second fintech in South Africa to be designated as a clearing system participant in 2021. Stitch can provide a complete, end-to-end card product with complete control over the entire product lifecycle because it is a designated clearing system participant.
“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,” said Junaid Dadan, president and co-founder at Stitch.
