Brass will stop operating independently and migrate customers into Paystack Microfinance Bank before July 31, 2026, as operations move under Paystack.
Nigerian business banking startup Brass said it will merge its operations into Paystack Microfinance Bank, and it will no longer operate as a standalone company.
Brass customers who want to continue using the service will be moved to Paystack MFB before July 31, 2026. A microfinance bank is a regulated financial institution that can hold deposits and offer banking services under a central bank licence.
The transition shifts Brass’s business banking features, like business accounts, payroll tools, expense management, and cash flow tracking, onto Paystack’s regulated banking infrastructure. For SMEs, this is the underlying “bank rails” that handle account custody, transfers, and compliance.
The shutdown is the latest step in a longer turnaround story. Brass was founded in 2020 by Sola Akindolu and Emmanuel Okeke, and it grew during a wave of fintechs building digital banking layers for small businesses.
In 2024, Brass faced a liquidity crunch, which is a cash shortfall that can make it hard to process withdrawals and settle customer requests on time. That period led to operational turbulence and increased scrutiny from users across Nigeria’s fintech market.
This move shows how B2B fintech products are leaning more on licensed entities as regulators tighten expectations around customer funds, reporting, and risk controls.
For customers, being served through a licensed microfinance bank could reduce uncertainty around where funds are held and how issues are handled. It can also mean more standardised processes for KYC, which is identity verification required to open and run accounts.
For the ecosystem, Brass’s exit as an independent entity is a reminder that product demand alone is not enough in business banking. Liquidity management, compliance, and access to regulated infrastructure are now central to survival.
On Paystack’s side, absorbing Brass’s business banking operations could strengthen its push beyond payments into broader SME financial services, using a bank-backed structure rather than partnerships alone.
Brass will now operate as part of Paystack’s microfinance banking setup, while Paystack expands its regulated footprint in Nigeria’s SME banking market.
Primary Source: Techcabal
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