A prominent fintech startup based in South Africa, Stitch, specializing in online payments infrastructure tailored for large enterprises, has recently made headlines with its acquisition of ExiPay, a startup focused on providing in-person payment solutions for retail businesses. While the financial details of the acquisition remain undisclosed, this strategic move is set to enhance Stitch’s capabilities by integrating both online and in-person payment systems into a single, cohesive platform. This integration aims to simplify the payment tracking process for businesses operating across various channels.
Founded in 2019, Stitch has successfully raised $52 million in funding and has expanded its operations into Nigeria, with plans to further extend its reach into markets such as Kenya, Ghana, and Egypt in the near future. This acquisition not only strengthens Stitch’s market position but also enhances its ability to meet the evolving needs of enterprises in an increasingly integrated payment landscape.
The acquisition marks a significant expansion of Stitch’s product offerings, enabling the company to deliver an omnichannel payment solution that seamlessly combines online and in-person payment functionalities for its enterprise clientele. This decision comes in direct response to the increasing demand for integrated payment solutions within South Africa’s retail sector, where a notable gap persists between online and traditional in-person payment systems.
In the wake of the acquisition, Stitch has successfully integrated ExiPay’s six-member team into its operations, rebranding the service as “Stitch In-person Payments.” This new service will be marketed to Stitch’s existing client base, which includes major corporations such as Bash, MTN, Cell C, and MultiChoice.
Stitch’s CEO, Kiaan Pillay, emphasized the significance of this acquisition, stating;
The in-person payments space has not been disrupted for enterprises. Many players are catering to smaller businesses in the market, but no one is addressing the needs of larger enterprises; this was a key motivation behind our decision.
Pillay further remarked on the mutual benefits of the acquisition, stating, “This deal is attractive for both ExiPay and Stitch investors. We are now operating under one roof.”
The choice to acquire ExiPay, rather than forming a partnership with larger in-person payment providers, underscores Stitch’s commitment to maintaining control over its technology stack. Pillay noted that developing a similar solution internally would have required an estimated 18 to 24 months, potentially hindering the company’s strategy to launch a unified payment platform in a timely manner.
ExiPay, founded in 2022 by Derek Keats and Willem Büchner, has been instrumental in enabling physical retail stores to accept in-person payments via point-of-sale (POS) terminals. The startup reported processing approximately R2 million (around $106,000) in daily transactions in 2023. In 2024, ExiPay secured €5.4 million (approximately $5.6 million) in private cash-to-equity funding from Izwe Africa, a fintech group that specializes in providing credit to small businesses across Ghana, Kenya, and Zambia.
