Paystack Absorbs Brass Banking Operations as Startup Winds Down

Nigerian business banking startup Brass will cease operating as an independent company and migrate customers to Paystack Microfinance Bank (Paystack MFB), bringing an end to one of Nigeria’s most closely watched fintech rescue stories.

In a statement released on Monday, Brass said customers who choose to continue using its services will be transferred to Paystack MFB before July 31, 2026, as its business banking operations are absorbed 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 move closes a turbulent chapter for the startup, which once aimed to simplify banking for African businesses before a liquidity crisis threatened its future in 2024.

Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass developed a digital banking platform designed for startups and small businesses. Its services included business accounts, payroll management, expense tracking and cash-flow tools. The company emerged during a period of rapid fintech growth across Africa, when startups were racing to modernise financial services for businesses underserved by traditional banks.

However, problems began to surface in late 2023 when customers reported delays in accessing funds and processing withdrawals. Several founders publicly raised concerns after being unable to access money held in their company accounts, sparking wider concerns across Nigeria’s startup ecosystem. The situation raised questions about confidence in digital financial platforms at a time when fintech adoption was accelerating across the continent.

The Paystack Acquisition

In May 2024, a consortium led by Paystack, alongside PiggyVest, Ventures Platform and P1 Ventures, acquired Brass for an undisclosed amount. The deal was widely viewed as an effort to stabilise operations and prevent a loss of confidence in Nigeria’s growing fintech sector.

At the time, the investor group said it intended to continue supporting Brass’s mission of making it easier for entrepreneurs to build and run businesses. The acquisition also resulted in significant restructuring, with co-founders Akindolu and Okeke departing the company.

According to Brass, the period following the acquisition focused on rebuilding internal systems and strengthening operations under a new leadership team led by Philip Obosi and Yvonne Obike.

Migration to Paystack MFB

Brass said it became increasingly clear that its next stage of development would require deeper integration with a larger financial platform. For Paystack, the move further expands its ambitions beyond payments and into broader financial services for businesses.

The company entered Nigeria’s banking sector earlier this year through the acquisition of Ladder Microfinance Bank, which was subsequently rebranded as Paystack MFB. The bank now offers services including treasury management, transfers and business banking products.

Bringing Brass’s customer base and banking tools into Paystack MFB allows the two businesses to operate within a single regulated infrastructure. Customers who choose to remain on the platform will be migrated to Paystack MFB before the July 31 deadline.

Industry Consolidation

The integration also add to changes taking place across Africa’s fintech sector. Between 2020 and 2022, venture capital funding flowed into startups at record levels, encouraging companies to expand rapidly and launch overlapping financial products. As funding conditions became more challenging and regulatory oversight increased, consolidation has become a growing trend.

Earlier this year, Flutterwave acquired open banking startup Mono, adding to a growing list of mergers and acquisitions reshaping the continent’s fintech landscape.

While the Brass brand will disappear as an independent company, the transition is expected to provide customers with access to a broader range of financial services through Paystack’s banking platform. Brass described the move as the next step in its evolution following the Paystack-led acquisition and restructuring, with customer accounts and services moving into Paystack MFB’s regulated banking infrastructure.