Leading South African payments infrastructure provider Stitch Group has announced that it has acquired Efficacy Payments, a digital payments business with headquarters in Cape Town that specializes in cash deposit and card acquiring solutions. While the financial terms of the deal remain confidential, the move is positioned as a strategic step to expand Stitch’s role in the local payments landscape.

With this acquisition, Stitch intends to offer merchants direct card acquiring services as a DCSP, a role that allows the company to facilitate direct card clearing for both online and in-person payments. Efficacy, established in 2016, has held DCSP status since 2021, bringing regulated clearing experience to Stitch’s growing portfolio.

The integration of Efficacy’s technology is expected to unlock a number of operational benefits for Stitch’s clients. These include better conversion rates at checkout, reduced transaction costs, real-time reporting, and more efficient reconciliation processes. Stitch also highlights that merchants will gain faster access to innovative product features and updates as a result of this enhanced infrastructure.

Junaid Dadan, Stitch’s president and co-founder, commented on the announcement, noting that card processing remains a core need for South African businesses. He emphasized the opportunity to improve key aspects such as transaction success rates, reconciliation systems, and accessibility to cutting-edge technology.

This deal follows Stitch’s earlier acquisition of Dutch fintech ExiPay in January, which added in-person payment functionality to the company’s existing online payment solutions. The company’s consistent growth led to a $55 million Series B investment round in April, which was led by QED Investors. This round brought Stitch’s total funding to $107 million, further reinforcing its ambition to build a full-stack payments infrastructure offering for the South African market.

With Efficacy now part of its ecosystem, Stitch is well-positioned to deliver an end-to-end payment experience across digital and physical channels.