South African payment and data API fintech firm, Stitch, has today announced the launch of LinkPay, the first-ever fintech product that links account payment and provides a one-click payment method.
LinkPay enables variable recurring payments and allows supporting businesses in South Africa and Nigeria experience a fast and more secure payment method.
LinkPay can also be integrated alongside Stitch Payouts and financial data products to enable a complete linked account journey, including verified payment, refunds and withdrawals.
Stitch, founded in February 2021 with offices in Capetown and Johannesburg, South Africa, is an API fintech company that provides businesses with an easier way to launch, optimise and scale financial products in Africa.
With LinkPay, Stitch can enable businesses offer a more frictionless and secure payments experience, making it easier for their customers to pay. Combined with Stitch Financial Data and Payouts products, LinkPay offers a truly unique closed-loop linked-account experience for returning users – from fast, seamless onboarding, to one-click payments and payouts. As a result, businesses will see higher conversion rates, a reduction in costs and ultimately a more convenient experience for their users.Junaid Dadan, Chief Product Officer at Stitch
Stitch expanded to Lagos, Nigeria, in October 2021.
The firm raised $21 million in Series A funding in February 2022. Investors include PayPal Ventures, TrueLayer, firstminute capital, The Raba Partnership, CRE Venture Capital, Village Global, Zinal Growth (the investment vehicle of Checkout.com founder Guillaume Pousaz) and angels including founders and early builders from Chipper Cash, Monzo, Venmo, GoCardless, Plaid, Unit and more.
The main goal of Stitch is to reduce businesses’ efforts to connect with their user’s financial accounts while enabling instant, secure payments and payouts and to access financial data. Their infrastructure-led approach supports a number of different use cases, including KYC and onboarding, personal and business finance, lending, insurance, crypto and wallet ecosystems and more.
With technology, higher customers needs and the presence of fintech companies, Africa’s consumers are rapidly shifting from the traditional payment method to something simpler, faster, convenient and secure payment method.
LinkPay was designed to provide an effective and faster payment method (known as Instant EFT in South Africa and Pay by Bank in Nigeria) that tokenises user financial accounts to enable one-click payments.
Some of the features are:
- One-click payments for returning users: There is no need for a repeated login process. One-click is all it takes to link your financial account as the default payment method.
- Link and pay later: A user can pre-link an account and come back anytime to make a payment. This is most common for certain transactions like scan-to-pay apps, investment offerings and any other fintech application that often involves repeat transactions from the same primary financial account.
- Verified payment: After a user’s account has been linked, LinkPay, integrated with Stitch Financial Data will reference the account details for verified payment to reduce the risk of fraud activities. Also, balance, transaction history and statements can be assessed.
- Seamless payout over API: The combination of LinkPay and Stitch payouts allows users receive refunds or make withdrawals to the same verified account used for a pay-in.
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