South African API fintech Stitch has launched Stitch Payouts, a service it claims will enable businesses to send payments to customers, vendors, suppliers and employees easier and faster.
Stitch Payouts will consist of 3 elements: refunds, withdrawals and disbursements. Refunds will allow Stitch customers to reverse funds sent to the same account used for a pay-in, allowing businesses like e-commerce store operators to conveniently refund customers.
Withdrawals on the other hand will allow verified Stitch accounts to withdraw funds from fintech and crypto wallets. Lastly, disbursements, which can be sent to any domestic account after verification, will allow Stitch customers to make fast and easy payments to vendors, suppliers, merchants, employees, etc.
In a statement shared with TechCabal, Stitch co-founder and CPO Junaid Dadan mentioned that Stitch Payouts will add much-needed convenience to businesses’ operations as they would no longer need to manage manual bank payments or deal with multiple bank and payment service provider (PSP) dashboards.
Dadan also mentioned that Stitch Payouts will allow businesses to “create custom flows of funds to move their money however they need to, directly from their application or payments operations software”.
Payouts is Stitch’s second major product release since the startup raised $21 million in a Series A funding from investors including PayPal Ventures, CRE Venture Capital, and Firstminute Capital in February. Their earlier product release, Stitch LinkPay, was launched in April.
The service will only be available to customers in South Africa, one of Stitch’s 2 markets (the other being Nigeria where it expanded to in October 2021 after emerging from stealth in February of that same year).
With Paystack also having launched Paystack Transfers in South Africa last week, it would seem that the competition in the payments space is heating up in the country and it would be interesting to see how each provider manages to differentiate themselves from the competition as new payment products keep coming.