Stitch Adds BNPL to Payments Platform

Why It Matters

The addition positions Stitch to capture growing consumer demand for flexible financing, boosting conversion rates and average order values for South African retailers while intensifying competition in the regional BNPL space.

Key Takeaways

• Stitch launches BNPL with major SA merchants Lego, North Face.
• Merchants can control BNPL visibility by product, category, or price band.
• Customers split payments 2‑6 installments; merchants receive full amount within 24 hrs.
• Stitch reports higher approval rates than competing South African BNPL providers.
• Company raised $107 million total, including $55 million Series B in 2025.

Pulse Analysis

Buy‑now‑pay‑later has become a mainstream financing channel worldwide, with global transaction volumes projected to exceed $1 trillion this year. In South Africa, where credit card penetration remains modest, BNPL offers a low‑friction alternative that resonates with digitally savvy shoppers. Stitch’s rollout of BNPL across its existing payments stack—already supporting cards, Apple Pay, Google Pay and local bank‑transfer options—extends the company’s value proposition from pure transaction processing to a full‑service checkout experience. By embedding the service directly into merchant sites, Stitch sidesteps the fragmented ecosystem of third‑party BNPL apps and captures the entire consumer journey.

For merchants, the new offering delivers immediate cash flow because Stitch settles the full purchase amount within 24 hours, eliminating the risk of delayed installment collections. Retailers can also target BNPL displays to specific SKUs, categories or price bands, ensuring the option appears where it is most likely to lift conversion. Access to real‑time repayment data through the merchant’s own portal enables better risk management and personalized marketing. Early feedback suggests higher approval rates than rival providers, translating into higher conversion rates and larger average order values for participating brands.

Stitch’s $107 million funding history, highlighted by a $55 million Series B in April 2025, gives it the runway to scale the BNPL product and invest in underwriting technology. The move puts the company in direct competition with local players such as PayJustNow, HappyPay and Float, while also positioning it to partner with large e‑commerce platforms like Takealot and MTN. As South African regulators tighten oversight of installment financing, Stitch’s integrated data approach may provide a compliance edge. If the firm can sustain its reported approval advantages, it could set a new benchmark for enterprise‑grade BNPL solutions in emerging markets.