After six years of operation, Nigerian fintech startup Brass on Monday, June 1, announced that it is moving its customers into the Paystack Microfinance Bank (Paystack MFB) ecosystem, effectively ending its run as an independent company.
In a statement seen by TechMedia Africa, the company said the decision followed months of rebuilding after its 2024 acquisition, adding that it had become clear that the next phase of growth would require “deeper infrastructure, broader capabilities, and a platform already trusted by businesses across Africa.”
“Brass will move its business banking into Paystack MFB. As part of this transition, Brass will no longer operate as an independent entity,” the company said.
Founded in 2020, Brass positioned itself as a digital banking platform for African businesses, offering services including payments, payroll, expenses management and cash flow tracking. The startup sought to simplify banking for Nigerian businesses by enabling users to open and manage accounts digitally without visiting physical bank branches.
Building in Nigeria’s fintech space
But despite Nigeria’s growing fintech ecosystem, building and scaling financial technology companies in the country remains difficult.
Although more than 430 fintechs currently operate in Nigeria, many face persistent challenges including regulatory uncertainty, rising compliance costs, infrastructure limitations, cybersecurity threats, high customer acquisition costs, and limited access to long-term funding.
These challenges persist even as financial inclusion gaps remain wide. According to the Central Bank of Nigeria’s Fintech Policy Insight Report, about 26 percent of Nigerian adults were still financially excluded as of 2023, with exclusion rates rising to 37 percent in rural areas and 47 percent in Northern Nigeria.
In 2024, Brass suffered a liquidity crisis that threatened its survival, forcing the company into a restructuring phase.
“But building a fintech company in Africa is not easy, and like many startups, we went through a period that tested both the business and the team. During that period, in May 2024, we entered a new phase when a consortium led by Paystack, alongside PiggyVest, Ventures Platform, and P1 Ventures acquired the company,” Brass said.
Why Brass is moving to Paystack Microfinance Bank
The latest transition comes barely six months after Stripe-owned Paystack launched Paystack Microfinance Bank, a licensed microfinance bank operating independently of Paystack Payments Limited.
Brass said Paystack MFB’s infrastructure and broader product capabilities would allow it to better serve merchants going forward. The company disclosed that interested merchants would be migrated gradually over the next two months.
“Between now and July 31st, 2026, we will be moving interested Brass merchants into Paystack MFB in the least disruptive way possible,” the company said.
It added that every Brass customer would hear directly from the company with “clear next steps on what this transition means for them.”
According to Brass, merchants migrating to Paystack MFB would continue to access core business banking features while also benefiting from broader capabilities available within the Paystack ecosystem.
“It offers much of what Brass customers rely on today: managing accounts and operations, organising payouts and expenses, moving money quickly and reliably, and gaining insight into financial activity, alongside a broader set of capabilities within a more powerful platform,” the company said.