Brass, the Nigerian business banking startup, will shut down as an independent company and move its customers into Paystack Microfinance Bank.
The company confirmed on Monday that interested customers will be migrated into Paystack MFB before July 31, 2026, further noting that its business banking operations will now sit within Paystack’s regulated banking system.
“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.”
Brass launched in 2020 with a focus on small and growing businesses. It offered accounts, payroll tools, expense tracking and cash-flow management. Many SMEs used the platform as an alternative to traditional banking systems that was previously slow and rigid.
By late 2023, cracks began to show. Customers reported delays in accessing funds, and issues spread across the startup ecosystem. The challenge around withdrawals affected trust in deposit-like fintech services it offered
Things escalated into a liquidity crisis that placed the company under serious stress. Founders and operators publicly voiced out at the time, as issues grew around customer balances and operational stability.
A rescue deal followed in May 2024, when a consortium led by Paystack, alongside PiggyVest, Ventures Platform, and P1 Ventures acquired Brass after months of instability.
At the time, investors described the takeover as a stabilising step, saying they wanted to support the company’s mission and restore confidence in operations. Brass’s co-founders later exited the business after the acquisition.
In Monday’s statement, Brass said the months after the deal focused on rebuilding its systems. New leadership, led by Philip Obosi and Yvonne Obike, took charge of operations and internal processes.
Progress eventually made one direction clearer. “As we rebuilt and as our platform became more mature, something became increasingly clear,” Brass said. “The next phase of our growth could not be achieved alone.”
That path now leads directly into Paystack’s banking infrastructure.
Paystack has expanded steadily beyond payments. In January 2026, it entered Nigeria’s banking space through the acquisition of Ladder Microfinance Bank, which became Paystack Microfinance Bank.
The bank now provides transfers, treasury services and other business banking tools. Brass’s SME-focused products fit into that structure without major adjustment.
Paystack itself, acquired by Stripe in 2020, has continually strengthened its focus on regulated financial services across Africa.
Ever since, however, the sector has changed. During the funding boom between 2020 and 2022, many fintechs built overlapping products and competed for the same business customers. That expansion slowed when capital became tougher to get.
Regulators also increased oversight, especially around deposit-like services and liquidity management. Several companies have since restructured or merged to stay stable.
Consolidation has followed, with Flutterwave acquiring open banking firm Mono earlier in 2026, while Paystack’s absorption of Brass aligns with that pattern of consolidation.
Brass described its exit as a continuation rather than a closure. “This transition marks a new chapter,” the company stated, “with even greater capability for the businesses we serve.”
For SMEs, the migration brings accounts and operations into a regulated banking environment under Paystack MFB. Customers will receive direct communication on next steps ahead of the July 2026 deadline.
