omnispay, a UAE-based fintech focused on SME payments, has raised US$1.5 million in a seed funding round led by Singapore-based venture capital firm Mercatus Capital, with participation from regional and international investors.

The funding will support the company’s efforts to provide SMEs with a platform for collecting, paying, and managing cash flow, contributing to the GCC’s digital transformation agenda.

The company seeks to address a gap in the GCC’s B2B payments landscape, where less than 5% of transactions are digitised despite a market opportunity exceeding US$1.5 trillion annually.

Omnispay integrates collection, payment, and borrowing functions to reduce transaction costs and simplify cash flow management.

The platform has onboarded over 1,600 businesses, records a 40% month-on-month growth in processed volumes, and holds a five-star customer rating on Google.

Its mobile app supports English, Arabic, and Malayalam, aiming to break language barriers for businesses in the UAE.

More than 40% of its customers are accepting digital payments for the first time.

Vimal Kumar, co-founder and CEO of omnispay, highlighted the importance of SMEs, which make up 94% of companies and contribute 40% of the UAE’s GDP (UAE Ministry of Economy).

“SMEs are the backbone of the GCC economy, yet they’ve been underserved by legacy financial tools. By democratising access to digital payments, we believe we’re fuelling regional growth,”

he said.

SME adoption of digital payments increased by 60% post-pandemic, though B2B adoption remains significantly lower than B2C.

By combining invoice management and digital collections (Collect), flexible payment methods and disbursements (Pay), and future micro-lending functionality (Borrow), omnispay aims to facilitate digital adoption and support SMEs in a rapidly evolving economy.

Featured image credit: omnispay