Dubai-based fintech startup Fuse has raised $6.6 million in seed funding to simplify cross-border payments in the Middle East and North Africa (MENA) region. The company's infrastructure-grade payments platform offers virtual International Bank Account Numbers (IBANs), a product that is commonplace in Europe but nearly absent in MENA.

Fuse's founders, George Davis and James Smith, aim to bridge the gap in the region's fragmented regulatory and banking systems, making it easier for global businesses to operate in MENA. The startup's core product includes USD virtual accounts for cross-border money movement and dirham-denominated IBANs for local UAE payments, allowing businesses to operate in the region without setting up a local entity or navigating licensing.

According to Davis, Fuse is the only provider of virtual IBANs in the Middle East, a product that is hyper-commoditized in Europe. The startup's platform simplifies money movement across the region, offering first-mile collections and last-mile payouts for international businesses. This eliminates the need for businesses to handle their own FX or navigate licensing, making it an attractive solution for companies looking to expand into MENA.

Fuse's clients are primarily businesses in the U.S., Europe, and Asia that want to operate in MENA but lack the necessary banking setup or licenses. The startup's virtual IBANs have already been used by employers of record (EORs) to pay salaries in dirhams to employees in the UAE. Customers can create unlimited IBANs in their end customers' names and make local payments, without the need for residency or local entities.

Fuse has already served over 20 clients, including EORs, remittance firms, crypto platforms, marketplaces, and PSPs. The startup has begun enabling direct payouts in Saudi Arabia, Egypt, and Jordan, and supports wholesale foreign exchange for Indian and Chinese businesses operating in the UAE. Davis sees similarities between Fuse and Visa-backed Currencycloud, but notes that Fuse is built specifically for the Middle East.

The startup's growth has been impressive, with hundreds of millions of dollars processed per quarter and revenue growing over 50% month-over-month. Davis attributes this success to the underserved nature of the MENA market, where businesses are transacting more than ever due to a surge in e-commerce and digital payments.

Fuse's $6.6 million seed funding round was led by Northzone, with participation from Flourish Ventures, Alter Global, and notable angels, including Flutterwave CEO Olugbenga "GB" Agboola and former Morgan Stanley MENA president George Makhoul. The fresh capital will be used to grow the team, secure additional regional licenses, and expand the product suite beyond the UAE.

Davis's experience in solving cross-border payments for the Middle East came from his time at TrueLayer and BVNK, where he saw firsthand the challenges of expanding into the region. He launched Fuse in 2023 with CTO James Smith, a longtime collaborator who led engineering at both TrueLayer and BVNK. The two now lead a 12-person team across engineering, product, and compliance.

Sanjot Malhi, partner at Northzone, praised the Fuse team, saying, "Their ability to simplify MENA's complex cross-border flows is exactly what the region needs." With its innovative solution and growing traction, Fuse is well-positioned to capitalize on the opportunities in the MENA region, where demand for cross-border payments is on the rise.