CPI Card Group has announced a strategic partnership and minority investment in Karta, an Australian payments technology firm, to address a critical vulnerability in the prepaid card market. This collaboration integrates Karta's patent-pending SafeToBuy technology with CPI's U.S. prepaid solutions, creating a new standard for security that bridges physical card distribution with digital payment experiences. The initiative aims to significantly reduce gift card fraud by eliminating printed card details and embedding security directly into an EMV chip.
CPI Card Group partners with and makes a minority investment in Australian FinTech Karta.
The collaboration integrates Karta's SafeToBuy fraud prevention technology into CPI's prepaid cards.
SafeToBuy removes printed card numbers, embedding data securely within an EMV chip to prevent fraudulent draining.
Shoppers activate and manage the card by tapping it to their smartphone, enabling mobile wallet integration.
As Karta's exclusive U.S. supplier, CPI will produce these secure, contactless gift cards.
A pilot program is underway with a leading U.S. retailer, with a full market launch targeted for early 2026.
The core innovation of this partnership is the direct attack on a common fraud vector: the theft of printed card numbers from physical gift card packaging. Karta's SafeToBuy technology keeps the card's payment data completely inaccessible until the moment of activation at the point of sale. This helps mitigate the widespread issue of cards being fraudulently drained before a legitimate customer even purchases them. The solution uses a secure EMV chip, similar to those in modern credit cards, to hold the data until it is safely transmitted to a consumer's device.
The process is designed for simplicity and security. A shopper selects a gift card in-store and taps it on their smartphone to validate its status. After purchase, they can verify the transaction, immediately add the card to their mobile wallet, or reveal the details for online use. This creates a seamless bridge between the physical card and digital payment ecosystems, enhancing convenience while maintaining a high security standard from the shelf to the first transaction.
The partnership leverages CPI's scale and market leadership in card production with Karta's specialized technology. “Our clients want to deliver secure and engaging customer experiences, both physically and digitally,” said John Lowe, President and CEO of CPI Card Group. “We are excited to partner with Karta to bring SafeToBuy technology together with CPI’s solutions... this collaboration allows us to help mitigate card fraud.”
This relationship positions CPI to eventually extend this security approach to debit and credit cards, offering a comprehensive fraud reduction solution for retailers, distributors, and financial institutions. The successful implementation in the U.S. prepaid market is the first step in establishing a new benchmark for payment card security across categories.
CPI Card Group is a payments technology company providing a comprehensive range of payment cards and related digital solutions. With a focus on building personal relationships and earning trust, we help our customers navigate the constantly evolving world of payments, while delivering innovative solutions that spark connections and support their brands. We serve clients across industry, size, and scale through our team of experienced, dedicated employees, our network of technology and card service providers, and our high-security production facilities, all located in the United States. CPI is committed to exceeding our customers’ expectations, transforming our industry, and enhancing the way people pay every day.
Karta is an Australian-born FinTech founded in 2021, backed by the Commonwealth Bank of Australia and CPI Card Group. We’re redefining the future of payment cards by making them smarter, safer, and more connected.
Our patent-pending SafeToBuy technology helps protect cards from fraud and tampering — already live in Australia and in pilot in the U.S. to secure gift cards, with planned expansion to debit, credit, and transport cards. By bridging physical cards and digital wallets, Karta seeks to help consumers, retailers, and financial institutions engage securely and seamlessly in an increasingly digital world.
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