Nigeria: Brass to Merge Operations into Paystack MFB, Ending Independent Run

Nigerian business banking startup Brass will cease operating as an independent company and transition its customers into Paystack Microfinance Bank (Paystack MFB), bringing to a close one of Nigeria’s most closely followed fintech recovery stories.

In a statement issued on Monday, Brass confirmed that eligible customers will be migrated to Paystack MFB before July 31, 2026, as the company integrates its business banking operations into Paystack’s regulated financial 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 marks the final stage of a turbulent period for the startup, which once emerged as a leading digital banking platform for African businesses before operational challenges threatened its survival.

Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass built a financial operating platform for startups and small businesses, offering business accounts, payroll services, expense management tools, and cash-flow tracking.

The company gained traction during a broader fintech wave aimed at modernising business banking and reducing dependence on traditional financial institutions for startups and SMEs.

However, by late 2023, Brass began facing operational strain after customers reported delays in accessing funds and processing withdrawals, triggering concerns across Nigeria’s startup ecosystem.

Several founders publicly raised concerns about restricted access to company funds, fuelling fears that instability within a deposit-taking fintech could weaken confidence in digital financial services.

The crisis culminated in May 2024 when a consortium led by Paystack, alongside PiggyVest, Ventures Platform, and P1 Ventures, acquired Brass in a rescue deal aimed at stabilising operations and protecting customer confidence.

Financial details of the acquisition were not disclosed.

At the time, the investor group described the intervention as part of a broader effort to make entrepreneurship more seamless for African businesses.

“We’re excited to act as new stewards for Brass’ mission,” the consortium said following the acquisition.

The deal also triggered a leadership transition, with Brass co-founders Akindolu and Okeke exiting the company as restructuring efforts commenced under new management.

According to Brass, the period following the acquisition focused heavily on rebuilding internal systems, improving operational processes, and strengthening customer experience under a 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, the integration represents a deeper expansion beyond payments into business banking and financial operations.

The Stripe-owned fintech, which entered Nigeria’s regulated banking space through the acquisition of Ladder Microfinance Bank in January 2026, has increasingly expanded its offerings beyond payment processing.

Paystack MFB currently provides treasury management, transfers, and business banking services, making Brass’s business banking products a natural fit within its broader financial ecosystem.

Industry analysts say the transition reflects a wider shift in Africa’s fintech sector, where consolidation is becoming increasingly common following years of aggressive venture-backed expansion.

Between 2020 and 2022, fintech startups rapidly scaled overlapping financial products as investor capital flowed into the sector. However, tighter funding conditions, rising operational costs, and increased regulatory oversight have since pushed many firms toward partnerships, acquisitions, and operational consolidation.

Recent activity across the ecosystem signals a broader trend. Earlier this year, fintech giant Flutterwave acquired open banking startup Mono, further highlighting growing consolidation within Africa’s financial technology landscape.

Despite the end of its independent operations, Brass framed the transition as an evolution of its mission rather than a closure.

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

The integration is expected to provide customers with expanded infrastructure, improved stability, and broader financial capabilities under Paystack’s regulated banking framework.