Expanding into the Middle East and North Africa (MENA) poses significant challenges for global businesses due to fragmented regulations and banking systems. Aiming to streamline this process, Dubai-based fintech company Fuse has secured $6.6 million in seed funding for the development of its cross-border payments API, which provides virtual International Bank Account Numbers (IBANs) — a service relatively uncommon in the region.
Founded in 2023 by CEO George Davis, previously a co-founder at BVNK, and CTO James Smith, Fuse claims to be the first infrastructure-grade payment platform in MENA to offer virtual IBANs, which are standard in Europe yet largely absent in this region. Davis highlights that their solution enables businesses to perform first-mile collections and last-mile payouts without needing a local entity, managing foreign exchange, or dealing with regulatory hurdles.
Globally, companies in MENA have two primary options for cross-border transactions: local payment providers that often lack scale or larger international players, like Thunes, that frequently work without local licenses and rely on inconsistent partnerships. Fuse positions itself uniquely as a fully licensed provider that centralises payment solutions, facilitating smoother transactions without the need for extensive local setups.
The company caters particularly to international businesses wanting to establish a presence in MENA but lacking the requisite banking arrangements. This includes employers of record (EORs) who, for instance, need local accounts to pay salaries in UAE dirhams (AED). Fuse simplifies this by offering USD-denominated virtual IBANs, allowing companies to convert funds and pay salaries directly to beneficiaries.
Despite the complexities tied to MENA’s banking and regulatory landscape, Fuse has already onboarded over 20 clients, including key industry players like dLocal, RemotePass, and platforms like Airbnb and Etsy, which are breaking into MENA markets. Although the UAE is currently its primary focus, Fuse is expanding capabilities to include direct payouts in countries such as Saudi Arabia, Egypt, and Jordan.
As a tailored solution for the region, Fuse is drawing comparisons to Currencycloud, which has a global focus. Fuse’s advantage lies in its regional expertise, offering local solutions amid rising e-commerce and digital payment demands. With an impressive growth trajectory, Fuse processes hundreds of millions of dollars in transactions quarterly, boasting over 50% revenue growth month-on-month.
Davis’s experience in fintech, including leading roles at TrueLayer and BVNK, ignited the passion for creating a seamless payment solution for MENA, recognising the challenges global businesses face. The recent funding round led by Northzone, along with contributions from Flourish Ventures and other notable investors, marks a significant step forward for Fuse. They intend to use this capital to expand their team, secure additional licenses, and broaden their product offerings beyond the UAE, aiming to establish themselves as a pivotal player in MENA’s evolving payment landscape.
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