Paystack to absorb Brass as business banking startup winds down independent operations

Nigerian business banking startup Paystack is fully integrating Brass’s banking operations into Paystack Microfinance Bank (Paystack MFB), bringing an end to Brass’s journey as an independent fintech company.

The move marks the final stage of a transition that began in May 2024 when a consortium led by Paystack, alongside PiggyVest, Ventures Platform and P1 Ventures acquired Brass following a difficult period for the startup.

Under the new arrangement, Brass customers will gradually migrate to Paystack MFB, which will take over the provision of business banking services previously offered by Brass.

End of the Road for Brass as a Standalone Company

Founded in 2020, Brass built its reputation by offering digital banking tools tailored to businesses, allowing companies to open accounts online, process payments, manage payroll and monitor cash flow without relying on traditional banking systems.

The startup attracted thousands of Nigerian businesses by simplifying financial operations and reducing the bureaucracy associated with business banking.

However, Brass acknowledged that operating a fintech business in Africa came with significant challenges, leading to a restructuring period that culminated in its acquisition by a Paystack-led investor group in 2024.

Following the acquisition, the company spent months rebuilding its systems, processes and operations while evaluating its long-term future within the Paystack ecosystem.

Why Brass Is Moving Into Paystack MFB

According to Brass, the company concluded that its next phase of growth required stronger infrastructure and broader capabilities than it could provide independently.

As a result, it decided to move its business banking operations into Paystack MFB, a licensed microfinance bank that already provides financial services infrastructure to businesses.

The company said Paystack MFB offers many of the same services Brass customers currently use, including account management, payments, payouts, expense tracking and financial reporting, while also providing access to a wider range of products and services.

Brass stated that the migration process will continue until July 31, 2026, with customers receiving direct communication about the transition and the steps required to move their accounts.

What This Means in Simple Terms

Think of it this way:

• Brass is not shutting down because customers lost their money.
• Instead, Brass is being folded into Paystack’s banking business.
• Customers who currently use Brass will gradually move to Paystack MFB.
• The Brass brand will effectively disappear as an independent company.
• Business accounts, payments and banking services will continue under Paystack MFB.
• Paystack gains Brass’s customer base and business banking expertise, while customers gain access to a larger banking infrastructure.

In practical terms, it’s similar to a smaller bank being merged into a larger bank. Customers keep banking, but under a different platform and brand.

A New Chapter After Acquisition

The transition also closes one of Nigeria’s more notable fintech turnaround stories.

After facing operational difficulties, Brass was rescued through the 2024 acquisition and subsequently rebuilt under new leadership. The decision to fully integrate into Paystack MFB suggests investors now see more value in combining the two businesses rather than running Brass as a separate entity.

For Paystack, the move strengthens its push beyond payments into broader financial services for businesses. For Brass customers, it means their banking relationship will continue, but under the Paystack MFB platform rather than the Brass brand.

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