Nigerian business banking startup Brass merges operations into Paystack MFB

Brass, a Nigerian business banking startup, will stop operating as an independent company and migrate customers into Paystack Microfinance Bank (Paystack MFB), closing the final chapter of one of Nigeria’s most closely watched fintech rescue deals.

In a statement on Monday, Brass said interested customers would be migrated into  Paystack MFB before July 31, 2026, as the company integrates its business banking operations into Paystack’s regulated banking infrastructure.

“Brass will move its business banking into Paystack MFB,” the company said. “As part of this transition, Brass will no longer operate as an independent entity.”

The shutdown marks the culmination of a turbulent two-year period for Brass, which once positioned itself as a modern banking layer for African businesses before a liquidity crisis threatened its survival in 2024.

The move comes two years after a consortium led by Paystack, alongside PiggyVest, Ventures Platform, and P1 Ventures, acquired Brass following months of operational turmoil and customer withdrawal delays. 

Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass built a digital banking platform for small businesses, offering business accounts, payroll tools, expense management, and cash-flow tracking. The startup emerged during a wave of African fintechs trying to replace traditional banking infrastructure for startups and SMEs.

But by October 2023, the startup began experiencing delays in processing customer withdrawals, with several founders publicly complaining about being unable to access company funds. At the time, investors and ecosystem operators worried that the collapse of a deposit-taking fintech could damage trust in digital financial services more broadly. 

In May 2024, a Paystack-led consortium acquired Brass for an undisclosed amount in a deal aimed at stabilising operations and preventing a wider confidence crisis in Nigeria’s fintech sector.

“We’re excited to act as new stewards for Brass’ mission,” the investors said at the time, describing the acquisition as part of a broader effort to make entrepreneurship “more frictionless and successful.”

The acquisition led to a restructuring of the company, with Brass co-founders Akindolu and Okeke exiting the business.

In Monday’s announcement, Brass said the months following the acquisition were spent rebuilding internal systems and operational processes under a new leadership team led by Philip Obosi and Yvonne Obike.

“As we rebuilt and as our platform became more mature, something became increasingly clear,” the company said. “The next phase of our growth could not be achieved alone.”

For Paystack, which was acquired by Stripe in 2020, the move deepens its push beyond payments into broader financial operations for African businesses. In January, Paystack entered Nigeria’s banking sector with the acquisition of Ladder Microfinance Bank. Paystack MFB offers treasury, transfers, and business banking services, making Brass’s business accounts and operations stack a closer fit within its existing infrastructure.

The integration also highlights how Africa’s fintech market is evolving after years of venture-backed growth. During the funding boom of 2020 to 2022, startups often built overlapping financial products while competing aggressively for customers. As capital tightened and regulators increased scrutiny, consolidation has become more common across the sector. In January, Flutterwave, Africa’s largest payments startup, acquired open banking startup Mono.

Brass framed its transition as a continuation rather than an ending.

“This transition marks a new chapter,” the company said, “with even greater capability for the businesses we serve.”