How Stitch powers enterprise logistics and last mile delivery

South Africa's logistics and last mile delivery sectors operate in one of the most complex commercial environments in the economy. Margins are tight, delivery windows are narrow and payment flows are rarely linear. From heavy goods logistics to rapid grocery delivery, operators must manage pre-authorisations, variable basket amounts, refunds, fraud risk and real-time customer expectations, often across multiple channels.

In this environment, payments are not just a utility. They are critical operational infrastructure. When payment flows fail, deliveries stall, working capital tightens and customer trust erodes.

Stitch works with large enterprises in logistics and last mile delivery, including Mr. D and The Courier Guy, to engineer payment systems designed for these realities. Here is what we have learned about what makes their payments needs particularly complex, and how we are enabling a simpler, smoother experience.

Managing asynchronous payment flows with branded links

Logistics businesses frequently need to collect additional funds after the initial checkout. This happens when the actual weight of a package exceeds the estimated weight, when customs duties increase or when bulk orders require partial settlement.

Too often, these additional payments are collected via generic third-party links sent via SMS or WhatsApp. Unbranded links can appear suspicious to customers, which delays payment and erodes trust. Stitch enables branded payment links embedded within the merchant's own domain. These links support multiple payment methods and provide clear contextual information about what the customer is paying for.

The result is less drop-off, faster settlement and stronger trust. Branded links also support bulk order scenarios where large invoices must be settled securely and efficiently.

For businesses that still require payment on delivery, Stitch can provision drivers with secure point-of-sale devices, ensuring consistent reconciliation and reporting across the full in-person payments stack.

Solving the pre-authorisation challenge

Pre-authorisation is a requirement for many delivery models. In heavy goods logistics, final costs can change based on weight, fuel surcharges or tax adjustments. In last mile grocery delivery, basket totals shift due to weighted items, substitutions or tips. If the pre-authorised amount is incorrect, merchants face either failed collections or delayed refunds.

Traditional card pre-authorisations can take up to 30 days to release if voided incorrectly. Delayed pre-auths are one of the most common drivers of customer complaints in this sector. Stitch supports optimised pre-authorisation flows across cards and digital wallets, enabling voids within one to three days where required. Stitch can also take pre-authorisations on debit cards, removing the need for cash deposits or manual refunds. This reduces working capital pressure and meaningfully improves the customer experience.

Capitec Pay Variable Recurring Payments (VRP) offers a strong alternative to traditional card pre-authorisation. With VRP, Capitec customers approve a capped amount in their banking app, allowing the final transaction value to adjust within agreed limits without repeated authentication. This is particularly effective for variable basket models in last mile delivery, where the final amount is only confirmed at the point of fulfilment.

Network tokenisation is another alternative worth considering. It enables merchants to securely charge post-purchase adjustments — such as tips — without requiring additional input from the customer and without exposing raw card data. Unlike pre-authorisation, network tokenisation has no time limit, which means merchants can charge the customer whenever necessary. If a pre-authorisation expires before a customer's outstanding balance is collected, there is no route to recover those funds without the card present. Network tokenisation closes that gap.

Reducing disputes and fraud exposure

Disputes and chargebacks represent a significant operational cost in logistics and delivery environments. One of the most common causes is unclear or generic bank statement references, which lead customers to dispute transactions they do not recognise.

Stitch enables dynamic bank references that clearly identify the merchant and the transaction context. This reduces avoidable disputes and simplifies reconciliation across high volumes.

Logistics platforms also carry elevated exposure to fraud and money laundering risk, particularly where high transaction volumes and multiple users intersect. Stitch's embedded fraud solution monitors transactions across multiple layers, detecting anomalous behaviour and preventing abuse before it scales.

Dynamic 3D Secure (3DS) authentication can be deployed intelligently, applying friction only where risk is elevated. This approach balances fraud mitigation with conversion protection, so legitimate customers are not unnecessarily disrupted.

Optimising digital wallet and alternative payment performance

Apple Pay and Google Pay are increasingly prevalent in in-person and hybrid delivery environments. Stitch provides issuer-level information from digital wallets, enabling merchants to identify the underlying card type even when tokenised. Refunds to digital wallets are processed back to the original card, maintaining consistency and full auditability.

Buy Now, Pay Later (BNPL) can also be deployed strategically in this context. Rather than presenting it as a default option at checkout, merchants can configure it to appear only when a transaction fails due to insufficient funds. This supports incremental sales without disrupting the primary checkout flow or affecting margin attribution.

For Pay by bank transactions, guaranteed payment options reduce settlement risk and provide greater certainty in high-value logistics scenarios where payment confirmation needs to be immediate.

Payments built for operational complexity

Logistics and last mile delivery businesses do not operate in static environments. Basket values change, delivery costs fluctuate and fraud risk evolves. Payment systems must be engineered to accommodate this variability without introducing friction into the customer experience or the back-office.

Through robust pre-authorisation flows, Variable Recurring Payments (VRP), network tokenisation, branded payment links, dynamic dispute management and embedded fraud controls, Stitch provides a payments foundation aligned to the operational realities of this sector.

For large enterprises in logistics and last mile delivery, precision payments infrastructure is not optional. It is the mechanism that keeps goods moving, cash flowing and customer trust intact.

Stitch provides 24/7, 365 engineer-led support, with monitoring across three layers: platform-wide, product-specific and client-specific. Enterprises are notified proactively if anomalies occur, rather than discovering failures independently.

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FAQs

What payment challenges do logistics businesses in South Africa face?

‍Logistics and delivery operators must manage variable basket amounts, pre-authorisation expiries, post-checkout payment collection and elevated dispute risk. Generic payment infrastructure is rarely built to accommodate these realities, which creates friction, working capital pressure and customer complaints.

What is pre-authorisation and why does it matter for delivery businesses?

‍Pre-authorisation temporarily holds a payment amount before the final charge is confirmed. In logistics, where costs can change based on weight, surcharges or substitutions, pre-authorisation allows merchants to confirm the final amount before settling. Stitch optimises this flow to enable voids within one to three days, reducing delays and customer complaints.

What is network tokenisation and how does it help logistics merchants?

‍Network tokenisation replaces raw card data with a secure token, allowing merchants to charge post-purchase adjustments without additional customer input. Unlike pre-authorisation, it carries no expiry date, making it a more flexible tool for logistics businesses that need to collect variable amounts after initial checkout.

How does Capitec Pay VRP help with variable delivery costs?

‍Capitec Pay Variable Recurring Payments (VRP) allows Capitec customers to approve a capped amount in their banking app. The final transaction value can then adjust within agreed limits without requiring repeated authentication, which suits variable basket models in last mile delivery.

How does Stitch help logistics businesses reduce payment disputes?

‍Stitch enables dynamic bank references that clearly identify the merchant and transaction context, reducing the likelihood of customers disputing transactions they do not recognise. Stitch's embedded fraud solution also monitors transactions across multiple layers to detect and prevent abuse before it escalates.