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Collaboration bridges physical and digital payment landscape to help prevent gift card fraud, connecting physical, mobile, and online use through contactless prepaid payment cards
CPI Card Group Inc. (Nasdaq: PMTS), a payments technology company providing a comprehensive range of payment cards and related digital solutions, today announced a strategic partnership with, and a minority equity investment in, Karta, an Australia-based prepaid program manager and payments technology firm. The partnership offers CPI clients an innovative solution for prepaid card security by integrating Karta's patent-pending SafeToBuy technology with CPI's U.S. prepaid solutions, driving a digital experience with a physical card.
SafeToBuy eliminates printed card numbers and details from gift card packaging with data and security embedded in an EMV chip, which helps mitigate the fraudulent draining of a prepaid card. By bringing this protection to prepaid programs, CPI advances its mission to reduce fraud and deliver a more secure, streamlined payment experience for customers and their cardholders.
"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. As a U.S. leader in open-loop gift card production, chip-enabled payment cards, and digital issuance solutions, this collaboration allows us to help mitigate card fraud by connecting a secure digital experience in-store, online, and on mobile with our prepaid solutions."
As Karta's exclusive supplier in the U.S., CPI will produce and personalize contactless gift cards with EMV chips embedding Karta's SafeToBuy applet. Once in store, shoppers can select a gift card of their choice and tap it to their phone to validate the card. After purchase, the shopper can verify the transaction, add the card to a mobile wallet, or reveal details in the app for an online or mobile purchase. At no point is the payment data on the prepaid gift card available prior to card activation.
"Karta's fraud prevention technology, purpose-built to safeguard prepaid, transit, credit, and debit cards, is amplified through our collaboration with CPI, a market leader in payment card services," said Clare Kinsey, co-founder and co-CEO of Karta. "By combining Karta's innovation with CPI's scale and reach, we are creating a new standard of security and trust that enables retailers, processors, and distribution partners to deliver safer, more reliable card programs while unlocking stronger growth opportunities across the ecosystem."
The relationship positions CPI to extend the approach to debit and credit and help retailers, distributors, program managers, and financial institutions reduce fraud and connect physical cards with mobile and online use. The companies are adapting Karta's prepaid program management platform for a U.S. launch targeted for early 2026 and are currently piloting the program in the U.S. with a leading national retailer.
About CPI Card Group Inc.
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. Learn more at www.cpicardgroup.com .
About Karta
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. Learn more at www.karta.com.au/safe-to-buy .
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