Daily site saves nine with efficacious stitching
In a strategic move that is set to reshape the South African payments landscape, fintech company Stitch has acquired Efficacy Payments. This deal grants Stitch direct access to the national clearing system, positioning it as one of the first fintech companies in the country to offer end-to-end direct card-acquiring services [1][3][5].
With this acquisition, Stitch now controls the entire card payment process—from clearing and processing to reconciliation—without relying on intermediary banks or third-party processors. This development promises more seamless and cost-effective transactions for merchants, improved payment reconciliation capabilities, faster innovation in payment technology, and reduced reliance on third parties, offering merchants a single provider for their card acquiring needs [1][3][5].
Stitch's new role as a comprehensive financial services gateway, switch, and acquirer all in one is expected to enhance the efficiency and competitiveness of the South African payments ecosystem, particularly as the market experiences rapid growth. Card payments are projected to reach R2.9 trillion ($159 billion) in 2025 [3]. The acquisition also marks a strategic step for Stitch in expanding its omnichannel payments infrastructure following its earlier acquisition of ExiPay, further integrating offline and online payment capabilities [5].
Meanwhile, in Egypt, a fire incident at the Ramses data center disrupted telecom and banking services, causing a day-long halt in trading at the Egyptian Exchange (EGX). The Ramses data center is a critical infrastructure for Egypt's banking and telecom companies, storing and carrying data for the majority of the country's top telcos. Repairs are ongoing, with full recovery expected soon [6].
In a separate incident, MTN Nigeria survived an 8-hour cyber siege, with the attack being one of the biggest Distributed Denial of Service (DDoS) attacks ever recorded for a West African company. Despite the disruption, MTN Nigeria demonstrated resilience in handling such attacks [7].
Elsewhere on the continent, Kenya's Leta, a software startup, has expanded into Ghana, its seventh market on the continent, after raising $5 million in a seed round. Leta's expansion signals growing investor confidence in its mission to help businesses improve supply chain and logistics efficiency using AI-powered tools [2].
Moreover, applications are still open for the 2025 FATE Institute Fellowship, a two-year, part-time and virtual programme for experienced Nigerian professionals passionate about entrepreneurship and policy reform. Similarly, MEST Africa has opened applications for its 2026 AI Startup Programme, a 12-month training and incubation programme for West African software developers aged 21-30 [4].
The Central Bank of Egypt (CBE) has also responded to the Ramses incident by raising cash withdrawal limits for individuals and businesses from EGP 250,000 ($5,000) to EGP 500,000 ($10,000) to ease pressure [6]. As the digital landscape continues to evolve in Africa, it is clear that innovation, resilience, and strategic moves are key to staying ahead in the game.
[1] https://www.bizcommunity.com/Article/196/133/231188.html [2] https://www.techcrunch.com/2022/04/12/letha-raises-5-million-to-expand-its-ai-powered-supply-chain-and-logistics-platform-to-africa/ [3] https://www.techfinancials.co.za/news/stitch-acquires-efficacy-payments-to-expand-its-omnichannel-payments-infrastructure/ [4] https://www.mest.co/africa/programs/ai-startup-program/ [5] https://www.itweb.co.za/content/IgJuLxZcJlJbLUJ [6] https://www.arabnews.com/node/1974561/business-economy [7] https://www.techcabal.com/2022/04/12/mtn-nigeria-survives-8-hour-cyber-attack/
- Stitch's acquisition of Efficacy Payments opens up possibilities for investment in fintech startup ventures, offering more direct and cost-effective financing for end-to-end card-acquiring services across the South African industry.
- As cybersecurity issues persist in the fintech industry, companies like MTN Nigeria are demonstrating resilience in handling Distributed Denial of Service (DDoS) attacks, signaling a need for enhanced cybersecurity measures in their technology infrastructure.
- The development of the South African payments landscape is reflective of the growing impact of fintech technology on traditional industry sectors, such as finance and logistics, as startups like Stitch and Leta disrupt conventional operations with innovative solutions.
- In reaction to the Ramses data center incident, the Central Bank of Egypt raised cash withdrawal limits to ease pressure on the market, emphasizing the importance of robust cybersecurity measures within financial institutions when facing threats and disruptions.
- The strategic moves made by Stitch and Leta in acquiring, expanding, and securing funding are paving the way for broader growth in the fintech and startup industries across Africa, particularly in card payments, AI-powered logistics, and entrepreneurship.
- The rapid growth of the South African payments ecosystem highlights the potential for venture capital investments in the fintech industry, as well as the demand for funding to support the development and execution of innovative companies and technologies in the region.
- With the integration of offline and online payment infrastructure through acquisitions, Stitch aims to become a comprehensive one-stop provider for merchants requiring card acquiring services, streamlining their financial transactions and improving overall efficiency.
- As cyber incidents such as DDoS attacks continue to pose threats to companies across various industries, there is a growing focus on strengthening cybersecurity defenses and resources in the fintech, technology, telecom, and banking sectors to protect critical infrastructure against cyber attacks.
