Simplifying Cross-Border Payments: Fuse Technology’s Impact in the GCC

Fuse Technologies, a company launched in January 2023, aims to simplify cross-border payments for global businesses, with a particular focus on the Gulf Cooperation Council (GCC) region, as stated in The Fintech Times.

George Davis, co-founder and CEO of Fuse Technologies, has a rich background in machine learning and payments. He previously built and sold a machine learning company and worked on payment solutions in London. These experiences led him to co-found Fuse with James, focusing on overcoming infrastructure barriers in the Middle East.

Fuse targets large international payment businesses, helping them expand into the GCC region by facilitating «last mile payouts,» or local currency payments from abroad. Davis notes that the Middle East offers immense growth potential but setting up the necessary infrastructure is often complex and time-consuming. Fuse simplifies this process by operating under their local license, allowing businesses to bypass regulatory and logistical hurdles.

Unlike local providers such as Nymcard and GPS that cater to local fintechs, Fuse focuses on international enterprise businesses without a local presence. Their major client, DLocal, exemplifies the type of large companies they target. Fuse provides virtual IBANs and ensures compliance with local regulations, enabling seamless transactions.

The regulatory landscape in the Middle East is particularly challenging. Unlike Europe or the UK, where regulations are well-defined, the Middle East often relies on supervisory frameworks with no objection certificates. This flexibility creates uncertainty for businesses. Davis emphasizes the importance of building strong relationships with regulators and maintaining transparency. Hiring a Chief Compliance Officer with extensive regulatory experience has been crucial for Fuse’s alignment with local requirements.

Looking ahead, Fuse plans to enhance its offerings by enabling payments both into and out of the GCC region, including facilitating local payments in dollars and euros. The company is also expanding its infrastructure to support local payments in other markets, such as the US and Singapore.

Compliance has been a cornerstone of Fuse’s strategy. Recognizing the region’s sensitivity to issues like money laundering and fraud, the company built its operations with a compliance-first approach, which has been positively received by regulators.

Despite regulatory complexities, Fuse has found a welcoming market. By focusing on bringing new revenue to local banking partners without cannibalizing existing business, Fuse contrasts with many fintechs that compete directly with traditional banks. Targeting smaller banks for initial partnerships has benefited both Fuse and its banking partners.

Fuse Technologies stands out for its strategic focus on the GCC region, addressing significant market gaps in cross-border payments. With a compliance-first approach and a clear vision for future expansion, the company is well-positioned to facilitate seamless payments into and out of one of the world’s most dynamic markets.

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