Stitch, a South African fintech startup, has acquired ExiPay, a startup that offers in-person payment solutions for retail businesses. The acquisition, for an undisclosed amount, will allow Stitch to integrate online and in-person payments into one platform, making it easier for businesses to track payments across different channels.

This move expands Stitch's product offerings, allowing it to provide an omnichannel payment solution that combines online and in-person payment capabilities for its enterprise customers. The acquisition is a direct response to the growing demand for integrated payment solutions in South Africa's retail market, where the gap between online and in-person payment systems remains significant.

Stitch has integrated ExiPay's six-person team into its operations, rebranding the service as "Stitch In-person payments." Stitch will sell this new service to existing clients, including major corporations like Bash, MTN, Cell C, and MultiChoice. The acquisition reflects Stitch's commitment to providing a unified payment platform that caters to the diverse needs of large enterprises.

According to Stitch CEO Kiaan Pillay, the in-person payments space has not been disrupted for enterprises, and many players are focusing on smaller businesses in the market. Pillay stated that building a similar solution in-house would have taken 18 to 24 months, delaying the company's strategy to offer a unified payment platform. By acquiring ExiPay, Stitch can accelerate its growth and expansion plans.

ExiPay, founded in 2022 by Derek Keats and Willem Büchner, allows physical stores to accept in-person payments through point-of-sale (POS) terminals. The company claimed it was processing R2 million ($106,000) in daily transactions in 2023. In 2024, it received €5.4 million ($5.6 million) in private cash-to-equity funding from Izwe Africa, a fintech group that provides credit to small businesses in Ghana, Kenya, and Zambia.

The acquisition is seen as a strategic move by Stitch to strengthen its position in the fintech market. Founded in 2019, Stitch has raised $52 million in funding, expanded into Nigeria, and has previously spoken of plans to expand into Kenya, Ghana, and Egypt. With the ExiPay acquisition, Stitch is poised to become a leading player in the omnichannel payment solutions space.

The deal is also attractive for both ExiPay and Stitch investors, with the companies now operating under one roof. As Stitch continues to grow and expand its product offerings, it is likely to have a significant impact on the fintech industry in Africa and beyond.

In conclusion, the acquisition of ExiPay by Stitch marks a significant milestone in the fintech industry, highlighting the growing demand for integrated payment solutions and the importance of strategic partnerships in driving innovation and growth.