Ololade Adeyanju/
One of Nigeria’s most closely watched fintech rescue stories has entered its final chapter, with business banking startup, Brass, announcing the end of its independent operations and the migration of customers to Paystack’s banking platform.
The development marks the formal absorption of Brass into the growing financial services ecosystem of Paystack, nearly two years after a crisis at the startup raised concerns about confidence in Nigeria’s fast-growing fintech industry.
In a statement to customers, Brass disclosed that it would transition interested users to Paystack Microfinance Bank (Paystack MFB) before July 31, 2026, effectively ending its existence as a standalone company.
“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 announcement closes the chapter on a startup that was once regarded as one of the most promising innovators in Nigeria’s business banking sector.
Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass built its reputation by providing digital banking services tailored to startups and small businesses. Its offerings included business accounts, payroll management, expense tracking and cash-flow management tools aimed at entrepreneurs underserved by traditional banks.
The company grew rapidly during the fintech investment boom that swept across Africa between 2020 and 2022, attracting attention as part of a new generation of startups seeking to modernise business banking.
However, Brass’ fortunes changed dramatically in late 2023 when customers began reporting difficulties accessing funds held in their accounts.
Several startup founders publicly complained about withdrawal delays and restricted access to deposits, triggering anxiety across Nigeria’s technology ecosystem.
The incident quickly evolved from a customer-service challenge into a broader test of confidence in the country’s fintech sector, with concerns emerging about the safeguards protecting customer funds held by non-bank financial technology platforms.
The crisis eventually led to a rescue deal in May 2024 involving Paystack and a consortium of investors that included PiggyVest, Ventures Platform and P1 Ventures.
Although financial terms of the acquisition were not publicly disclosed, the transaction was widely viewed within the technology industry as an intervention designed to prevent a deeper crisis and protect customers.
The takeover also resulted in significant changes within Brass, including the departure of its founders and the installation of a new leadership team headed by Philip Obosi and Yvonne Obike.
According to the company, the period following the acquisition focused on rebuilding internal systems, improving operational processes and restoring customer confidence.
Brass said the experience ultimately demonstrated that its long-term ambitions would be better achieved within Paystack’s broader banking infrastructure.
“As we rebuilt and as our platform became more mature, something became increasingly clear,” the company stated.
“The next phase of our growth could not be achieved alone.”
For Paystack, the acquisition represents another significant step in its evolution from a payments processor into a broader financial services provider.
The company, which was acquired by Stripe in a deal reportedly valued at more than $200 million in 2020, has steadily expanded beyond payments into banking infrastructure and business financial services.
Its entry into regulated banking came through the acquisition of Ladder Microfinance Bank, which now operates as Paystack MFB.
Click link to join our WhatsApp channel:
https://whatsapp.com/channel/0029VaH43zJGJP88wNggvZ16
0Related posts:
Polaris Domocratising Banking with VULTe
Staff, Customer Swindle Globus Bank of N900M after N1.7B Theft
Court Strikes Out Access Bank’s Case against Japaul …Lessons for Financial Institutions
Why CBN Must Reverse New Banking Charges (Part 1)
Paystack Suspends Co-founder, Ezra Olubi, Amid Sexual-misconduct, Old-tweet Scandal
Nigerian Fintech Thrifto Digitises ‘Ajo’, Bringing Structure and Trust to Traditional Group Savings