Table of Contents
1. Introduction: The Cross-Border Payment Challenge in MENA
Expanding into the Middle East and North Africa (MENA) has historically been a costly and convoluted endeavor for global businesses. With fragmented financial regulations, inconsistent banking infrastructure, and a lack of unified payment systems, entering the market has often required setting up local entities, navigating complex compliance landscapes, and overcoming bureaucratic hurdles.
As the region witnesses a surge in digital commerce and fintech activity, businesses are increasingly seeking efficient solutions for cross-border payments. That’s where Fuse, a Dubai-based fintech startup, is stepping in—with an ambitious goal to modernize the payment infrastructure across MENA.
2. Meet Fuse: Simplifying MENA Payments Infrastructure
Founded in 2023 by George Davis, former co-founder of BVNK, and James Smith, Fuse is a next-generation, infrastructure-grade payments platform. It’s the first to offer virtual International Bank Account Numbers (IBANs) specifically designed for the MENA region.
In Europe, virtual IBANs have become a staple in fintech. But in the Middle East, this capability was largely absent—until Fuse introduced its API-driven solution that simplifies money movement without requiring businesses to establish a physical presence.
“We’re currently the only provider of virtual IBANs in the Middle East,” Davis told TechCrunch. “It’s a hyper-commoditized product in Europe, but here, it simply didn’t exist.”
3. What Sets Fuse Apart: Virtual IBANs and Licensing
Fuse offers two primary solutions:
USD-denominated virtual accounts for cross-border transfers.
Dirham-denominated local IBANs for payments within the UAE.
These tools enable businesses to collect and disburse funds across borders without handling foreign exchange (FX) complexities or applying for local licenses. Unlike legacy payment providers, Fuse combines local compliance, fully licensed operations, and infrastructure-grade technology, making it an ideal bridge between global ambitions and local financial systems.
4. Use Cases and Real-World Applications
A key use case for Fuse is Employers of Record (EORs). For instance, a U.S.-based company with remote employees in the UAE must pay salaries in AED (dirhams) under its registered business name. Traditionally, this required opening a local account—an often impossible task for non-residents.
Fuse eliminates this barrier by issuing virtual USD IBANs that companies can fund from anywhere. These accounts are then used to make local payments in AED, directly to employee accounts—no residency or license required.
Current clients include:
RemotePass
DLocal
Airbnb
Etsy
Deel
Crypto platforms
Remittance firms
Marketplaces
PSPs (Payment Service Providers)
This flexibility allows clients to create unlimited virtual IBANs, assign them to customers globally, and manage local payments with unprecedented ease.
5. Scaling Across the Region: UAE, KSA, Egypt, and Beyond
While the UAE remains its home base, Fuse is rapidly expanding into Saudi Arabia, Egypt, and Jordan. It also supports wholesale FX for Indian and Chinese businesses operating in the UAE—two of the region’s busiest trade partners.
With a unified platform that supports both first-mile collections and last-mile disbursements, Fuse is becoming the go-to solution for businesses aiming to tap into the growing digital economy of the MENA region.
6. How Fuse Compares to Global Competitors
While many startups globally offer similar financial infrastructure tools, Fuse draws frequent comparisons to Visa-backed Currencycloud. Both platforms focus on virtual accounts and FX services. However:
Currencycloud operates globally.
Fuse is purpose-built for MENA-specific complexities.
Larger competitors like Thunes operate without full local licensing, often depending on third-party relationships. In contrast, Fuse is fully licensed, giving it a significant compliance advantage.
7. The Market Opportunity in MENA
The timing couldn’t be better. MENA is experiencing rapid digitization, fueled by a boom in e-commerce, fintech, and remote work. According to a report from McKinsey & Company, the region’s digital economy is expected to reach over $100 billion by 2025.
Davis believes the market is primed for regional infrastructure leaders:
“Global cross-border payments tend to be winner-takes-all markets,” he said. “But to win, you now need local specialists. That’s what we’re building.”
8. The Founders’ Vision and Strategic Backing
Both founders bring deep fintech experience. Davis previously scaled TrueLayer into a leading open banking platform and co-founded BVNK, where he experienced firsthand the difficulties of entering MENA markets.
Together with CTO James Smith, who led engineering teams at TrueLayer and BVNK, they’ve built a 12-person team spanning engineering, compliance, and product.
Fuse recently raised $6.6 million in seed funding, led by Northzone (investors in Klarna and Spotify), along with Flourish Ventures, Alter Global, and angel investors such as:
Olugbenga “GB” Agboola (Flutterwave CEO)
George Makhoul (former Morgan Stanley MENA president)
9. The Road Ahead: Licensing, Team Growth, and Expansion
With its fresh capital, Fuse plans to:
Expand its team
Secure more regional licenses
Enhance its product suite beyond the UAE
The company is already processing hundreds of millions of dollars per quarter, with revenue growing over 50% month-over-month. According to Davis, the startup made more in the last quarter than in the entire previous year.
Fuse monetizes by charging transaction fees, creating a scalable and sustainable revenue model.
10. Why Businesses Should Pay Attention
For any global business looking to enter the MENA market, Fuse offers a critical competitive edge. With a fully licensed, scalable infrastructure and unmatched simplicity, it removes barriers that previously required months—or years—to overcome.
As MENA continues to digitize, the opportunity for growth and innovation in the region is immense. Fuse is perfectly positioned to become the financial infrastructure layer for this transformation.
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