South African payments infrastructure company Stitch has partnered with Capitec Bank to add Capitec Pay Variable Recurring Payments (VRP) to its portfolio of payment solutions and bring it to the local market.
Billed the first VRP offering in SA, Capitec Pay VRP will enable Capitec customers to make recurring payments via their bank accounts and pre-approve future transactions via their Capitec app, adding another option to credit card for recurring purchases.
It allows a merchant to debit the Capitec account on a recurring schedule – recurring payments don’t always have to be the same amount – the amount can vary with each payment (eg based on usage, or variable billing).
A key feature is that with Capitec Pay VRP, the customer must authorise a maximum amount they can be charged per transaction, and they can pause or cancel as needed.
Initial set-up or payment must be authorised by the customer via the Capitec app, including an agreed limit per transaction. However, once set up, the customer does not need to authorise each additional or subsequent charge.
Chris Zietsman, executive head of Capitec Business Payments, states: “With Capitec Pay variable and recurring payments now available across our partner network and live with Stitch, clients gain more control and visibility over their ongoing payment commitments. We’re expanding Capitec Pay’s everyday uses – while keeping rates affordable for merchants.”
Capitec Pay VRP can be leveraged for a number of use cases requiring recurring payments, including delivery and logistics services, mobile phone contracts, food and grocery delivery and e-commerce subscriptions.
“We’re excited to work with the Capitec team to bring this solution to the South African market,” says Junaid Dadan, president and co-founder of Stitch.
“VRP gives Capitec customers more control over the way they make recurring payments, and helps businesses to streamline collections – especially where there are complex requirements. This will have a major impact on the market, and we’re excited to offer this to all our enterprise clients in South Africa.”
Stitch has been working closely with the Capitec team to offer Capitec Pay to customers since 2023. Today, Capitec Pay has over 25 million active customers.
Since launch in 2021, Stitch has grown to become among SA’s largest payments service providers and has raised $107 million in total funding to date, including its recent Series B round of $55 million announced in April 2025.
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