by Stitch, a leading South African payments infrastructure startup, has secured $55 million in a Series B funding round. This significant investment marks a pivotal moment for the company and Africa’s broader landscape of payment solutions. Stitch aims to transform how businesses and consumers transact across the continent.
Funding Details: Powering Expansion
QED Investors led the $55 million Series B round, which included Flourish Ventures, Norrsken22, Glynn Capital, and prominent angel investors such as comedian Trevor Noah.
Existing backers like Ribbit Capital, PayPal Ventures, Firstminute Capital, and The Raba Partnership joined the round. With this latest raise, Stitch’s total funding climbs to $107 million in just four years since its founding in 2021.
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Payment Solutions in Africa: Stitch’s Strategic Moves
Expanding In-Person Payments
Stitch is channeling its new capital into expanding its in-person payment offerings. Earlier this year, the company acquired ExiPay, a specialist in point-of-sale (POS) and offline payments. This acquisition, now rebranded as Stitch In-Person Payments, positions Stitch to serve online and offline merchants, including those in retail and hospitality.
Card Acquiring Capabilities
A significant portion of the funding will also enable Stitch to become a direct card acquirer. This move allows Stitch to process card transactions directly, bypassing banks and giving the company full control over the product lifecycle.
The result is lower costs, fewer intermediaries, and a seamless experience for enterprise merchants and consumers.
Unified Payment Infrastructure
Stitch’s core platform connects financial institutions with businesses, offering a single interface that supports multiple payment types—online, in-person, payouts, and account top-ups.
This flexibility is crucial for businesses seeking to meet Africa’s growing demand for integrated and accessible payment solutions.
The Growth of Payment Solutions in Africa
A Rapidly Expanding Market
Africa’s payment solutions sector is experiencing explosive growth. The continent’s digital payments volume surged by 16% in 2024, driven by mobile penetration, fintech innovation, and progressive regulation.
Digital wallets, contactless payments, and cross-border transactions are now central to Africa’s touch-free economy.
Mobile Money and Financial Inclusion
Mobile money remains a cornerstone of payment solutions in Africa. Platforms like M-Pesa have revolutionized access to financial services, with over 763 million registered mobile money accounts in Sub-Saharan Africa alone.
The value of mobile money transactions reached $832 billion in 2022, reflecting a 22% year-on-year growth.
E-Payments and Future Trends
McKinsey projects that Africa’s electronic payments market will grow by 150% from 2020 to 2025, reaching nearly $40 billion in annual revenues. Thanks to robust infrastructure and regulatory support, countries like Nigeria, Ghana, Kenya, and South Africa are leading this charge.
Payment solutions in Africa are also evolving to support cross-border trade, remittances, and hyper-personalized financial services.
Stitch’s Vision: Leading the Future of Payment Solutions in Africa
With its latest funding, Stitch is poised to play a central role in Africa’s payment revolution. The company’s focus on online and in-person payment solutions, direct card acquiring, and unified APIs positions it as a key enabler for businesses of all sizes.
Stitch’s CEO highlighted the company’s mission: “This funding round is focused on our next growth phase to expand our in-person payments, bolster our online payments suite, and better serve enterprise merchants across all payment needs”.
What’s Next for Payment Solutions in Africa?
The future of payment solutions in Africa is bright. As more consumers and businesses embrace digital payments, fintech innovators like Stitch drive financial inclusion, economic growth, and seamless cross-border commerce.
The continent is rapidly moving towards a fully digital, touch-free economy—making payment solutions in Africa a global fintech hotspot.
Stitch’s Series B funding is not just a milestone for the company—it’s a signal that Africa’s payment solutions sector is ready for its next leap forward.
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