Brass to shut down, move customers to Paystack MFB

Brass, the Nigerian business banking startup, will shut down as an independent company and move its customers to Paystack Microfinance Bank (Paystack MFB).

This is the final stage of one of Nigeria’s most closely watched fintech rescue deals.

In a statement on Monday, Brass said interested customers would migrate to Paystack MFB before July 31, 2026. The company said it is integrating its business banking services 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 decision comes after a difficult two-year period for the startup. Brass once positioned itself as a modern banking platform for African businesses. However, a liquidity crisis in 2024 threatened its survival.

A consortium led by Paystack acquired Brass in May 2024. Other investors in the deal included PiggyVest, Ventures Platform, and P1 Ventures.

The acquisition followed months of operational challenges and customer withdrawal delays.

Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass offered digital banking services to small businesses. Its products included business accounts, payroll tools, expense management, and cash-flow tracking.

The startup grew during a period when many African fintechs sought to modernise banking services for startups and small businesses.

However, problems emerged in late 2023. Several founders complained publicly that they could not access company funds. At the time, delays in customer withdrawals raised concerns across the startup ecosystem.

Industry stakeholders worried that the collapse of a deposit-taking fintech could damage trust in digital financial services.

As a result, the Paystack-led consortium stepped in. The investors said the acquisition would help stabilise operations and prevent a wider confidence crisis.

The deal also brought major changes to the company. Both co-founders exited the business following the acquisition.

Since then, a new leadership team led by Philip Obosi and Yvonne Obike has overseen efforts to rebuild operations and strengthen internal systems.

“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 expands its ambitions beyond payments. The company entered Nigeria’s banking sector in January after acquiring Ladder Microfinance Bank.

Paystack MFB now offers treasury, transfer, and business banking services. Therefore, Brass’s products fit naturally within its existing infrastructure.

During the funding boom between 2020 and 2022, many startups built similar products while competing aggressively for customers. Now, tighter funding conditions and increased regulatory scrutiny are driving more consolidation. Earlier this year, Flutterwave acquired open banking startup Mono in another major fintech deal.

Despite the shutdown, Brass said the transition should be seen as an evolution of its mission rather than an ending.

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