A South African fintech, Stich, has recently received funds in the sum of $25 million in a Series A extension controlled by Ribbit Capital. Stich, which has over the years established a full start-to-finish payment service, aimed at addressing complex and unfolding payment requirements for its customers, plans to use the raised capital to establish itself in a new fintech segment.
The new segment, which is for businesses to utilize application programming interfaces (APIs) to access users’ financial data and furnish an assemblage of integrated and inserted financial services. This open financial service, in which conventional banks release information through APIs to allow the establishment of new banking services for their users, has been a major disruption in international payments over the last ten years.
The South African fintech is determined to allow businesses to establish, optimize, and advance banking products. They intend to furnish API gateways to upgrade the transformation to online payments and maximize payment services of its users. From the recent 25 million dollars in funds raised by Stich in an extension round controlled by investor Ribbit Capital and supported by CRE Ventures, PayPal Ventures, and the Raba Partnership, the total Series A amount raised is now 46 million dollars.
Initially, Stich used to be a pseudo-bank-to-bank payment platform prior to its feature release spree, however, the fintech has transformed into a major provider of payment services. This services encourage users to accept payments through pay by bank, debit and credit cards, recurring debits, cash, and manual bank online transactions.
Also controlling, organizing, and adapting payments across various systems, providers, and topographies in one dashboard with PayOS; and distributing funds. Some operations benefitting from these are commercial hubs and recurring payments, lending and insurance, banking operations, and e-commerce payments.
Co-founder and CEO of Stich, Kiaan Pillay, said Stich’s full start-to-finish payment solutions are offered mostly in South Africa to businesses such as MTN, and Standard Bank’s SnapScan. The CEO of Stich revealed that “We moved away from being a single method platform to a next-generation PSP for local and global enterprises. Initially, we just had a pay-in feature where we support bank and card payments. While we’ve added more, we now have an orchestration layer, which many enterprises use to manage payment methods and reconcile across different banks. And we do payouts, whether a disbursement, a refund, or a withdrawal. Our solution is attractive for global companies trying to enter the market for the first time because of the end-to-end process.”
He further said “I don’t think large enterprises only use us for a single method. I think one of the coolest metrics for us is within the first three months of going live with a large enterprise, we’ve seen almost every single one adopt a second or a third product because we can incrementally add things in a very modular way,” “We’re sort of playing in a space that we wouldn’t have expected to, but because big merchants have demanded us to have more products, it’s been an easier place to get into and scale from there.”
Apart from its open banking services, the fintech furnishes customer support with domestic insights into payments terrain and custom-built, co-created results adapted towards eliminating the constraints of dispatching, collating, and managing funds.