For global businesses, expanding into the Middle East and North Africa (MENA) region remains a challenging and costly endeavor due to the complexity of regulations and banking systems. To address this issue, Dubai-based fintech company Fuse has developed a cross-border payments API, and has secured $6.6 million in seed funding to support its growth. Fuse aims to simplify cross-border payments with its innovative platform.

Founded in 2023 by George Davis, former co-founder of BVNK, and CTO James Smith, Fuse claims to be the first infrastructure-grade payments platform to offer virtual International Bank Account Numbers (IBANs) in the MENA region. According to Davis, this product is widely available in Europe but scarce in the MENA region. Davis noted that “We’re currently the only provider of virtual IBANs in the Middle East,” highlighting the significant gap in the market that Fuse is filling.

Fuse’s core product includes USD virtual accounts for cross-border money movement and dirham-denominated IBANs for local UAE payments. This enables the startup to offer first-mile collections and last-mile payouts for international businesses without requiring them to establish a local entity, manage foreign exchange, or navigate licensing complexities. By providing this service, Fuse is making it easier for businesses to operate in the MENA region.

Currently, global companies operating in MENA face two primary options: local payment firms that lack scale, or larger cross-border players that often operate without local licenses and rely on patchy partnerships. Fuse positions itself as a fully licensed, infrastructure-grade platform that simplifies money movement across the Middle East using virtual IBANs and local payout rails. With this approach, global businesses can operate in the region without setting up local infrastructure or navigating regulatory complexities.

Most of Fuse’s clients are businesses based in the U.S., Europe, and Asia that want to operate in MENA but lack the necessary banking setup or licenses to do so quickly. These clients can leverage Fuse’s platform to facilitate cross-border payments and expand their operations in the region.

Virtual IBANs to do the job

One notable use case for Fuse’s platform is employers of record (EORs). For instance, a U.S.-based company with employees in the UAE typically requires a local bank account to pay salaries in dirhams under the correct business name. However, obtaining a local bank account can be challenging without residency or licensing. Fuse solves this issue by issuing USD-denominated virtual IBANs, allowing businesses to top them up and pay salaries locally in AED (dirhams) directly to named beneficiaries.

Customers can create unlimited IBANs in their end customers’ names and make local payments, according to CEO George Davis. This flexibility enables businesses to operate in the region without the need for local entities or residency. As Davis explained, “Those customers don’t need to be residents or have local entities; they can be anywhere in the world.”

Fuse currently serves over 20 clients, including EORs, remittance firms, crypto platforms, marketplaces, and payment service providers (PSPs). Its client base includes notable companies such as DLocal, RemotePass, Deel, Airbnb, and Etsy, which are expanding their operations into the MENA region. By providing its services to these clients, Fuse is facilitating the growth of international businesses in the region.

While the UAE remains Fuse’s primary market, the platform has begun enabling direct payouts in Saudi Arabia, Egypt, and Jordan. Additionally, it supports wholesale foreign exchange for Indian and Chinese businesses operating in the UAE, which need to repatriate funds through controlled corridors. These corridors are some of the region’s busiest trade and remittance routes, highlighting the significance of Fuse’s services.

Although there are startups in various regions offering similar services, Davis draws comparisons with Visa-backed Currencycloud, which provides virtual accounts, FX, and cross-border payments. However, while Currencycloud operates globally, Fuse is specifically designed for the Middle East, addressing the unique challenges and opportunities in the region. As Davis noted, “But while Currencycloud is global, Fuse is built for the Middle East.”

The demand for Fuse’s services is driven by the surge in e-commerce and digital payments across the MENA region. This trend creates a rare window of opportunity for regional infrastructure players like Fuse to establish themselves as leaders in the market. According to Davis, “Global cross-border payments tend to be winner-takes-all markets,” but he believes that local specialists like Fuse are well-positioned to succeed. As he explained, “But to win, you now need local specialists. That’s what we’re building.”

Experience from TrueLayer and BVNK

Fuse’s growth has been impressive, with the company processing hundreds of millions of dollars per quarter and achieving revenue growth of over 50% month-over-month. In fact, Davis reported that Fuse generated more revenue this quarter than it did in the entire previous year. The company’s revenue model is based on transaction fees, providing a scalable and sustainable source of income.

Davis’s experience in the fintech industry, particularly at TrueLayer and BVNK, played a significant role in the development of Fuse. At TrueLayer, he helped scale the company from a data aggregator to a payments and open banking platform serving over 100,000 businesses. At BVNK, a crypto infrastructure startup he co-founded, Davis encountered the challenges of expanding into the Middle East and recognized the need for a specialized platform like Fuse. As he recalled, “We were supporting global businesses using stablecoins to move money out of emerging markets,” but the experience highlighted the difficulties of navigating the region’s complex regulatory landscape.

Davis launched Fuse in 2023 with CTO James Smith, a longtime collaborator who led engineering at both TrueLayer and BVNK. The two founders now lead a 12-person team across engineering, product, and compliance, driving the growth and development of the company.

The $6.6 million seed funding round was led by Northzone, a European multi-stage VC that has backed notable companies like Klarna and Spotify. The round also saw participation from Flourish Ventures, Alter Global, and prominent angels, including Flutterwave CEO Olugbenga “GB” Agboola and former Morgan Stanley MENA president George Makhoul. Sanjot Malhi, partner at Northzone, commented on the investment, saying, “The Fuse team is transforming payment infrastructure in one of the world’s fastest-growing markets,” and highlighting the company’s potential to simplify MENA’s complex cross-border flows.

With the fresh capital, Fuse plans to expand its team, secure additional regional licenses, and develop its product suite beyond the UAE. By doing so, the company aims to further establish itself as a leader in the MENA region’s cross-border payments market, facilitating the growth of international businesses and driving economic development in the region.