Stitch Group Enhances Card Processing Services with Acquisition of Efficacy Payments

South African fintech firm Stitch Group acquires Efficacy Payments, a digital payments company, for an undisclosed amount. Efficacy was designated a clearing system participant in 2021, becoming the second fintech in the country to achieve this status. The acquisition allows Efficacy to offer card acquiring services directly to merchants as a Designated Clearing System Participant (DCSP).

Stitch Group gains the ability to offer merchants a card product and manage the full lifecycle of card transactions. This includes direct connections to major card networks like Visa and Mastercard. The acquisition positions Stitch Group as one of the few South African fintechs offering direct card clearing for both online and in-person transactions, giving merchants a single provider for technical, compliance, financial, and operational needs.

Stitch Group president and co-founder Junaid Dadan expresses excitement over the acquisition, highlighting the importance of card processing for businesses in South Africa. Following the purchase of ExiPay earlier in the year, this acquisition expands Stitch Group’s presence in the in-person payments arena, aiming to improve conversion rates, reconciliation capabilities, and technology access for merchants.

The acquisition of Efficacy Payments by Stitch Group marks a significant move in the South African fintech industry. This strategic purchase aligns with Stitch Group’s goal of enhancing card processing services for merchants, streamlining the payment process and optimizing transaction conversion rates.

Read more at Yahoo Finance: Stitch Group purchases Efficacy Payments