CP Security Plans Network to Compete with Apple Pay

Startup CP Security Inc. is taking on tech giant Apple in the digital and mobile payments ring, building what CP Security calls network fabric that will bolster payments security and reduce expense.

Called ReceiptPass, CP Security's product will “process credit card transactions via cellular phone technology,” according to a video on the company's site.

CP Security did not provide details on the underlying technology or fee structure. “People don't see it coming just yet, but there is a train wreck on the horizon,” said Walter Steelman, president and CEO of CP Security, in a May 21 press release. “Apple has the largest repository of user payment data in the world. It's a matter of time before that becomes a major liability.”

Steelman goes on to say that there are too many middlemen trying to cull fees as the transaction flows across the traditional network. The cost of Apple Pay is creating a movement toward banks building their own mobile payment systems

According to CP Security, several banks are interested in the software solution. Although the company is seeking investors before launching.

CP Security's first product, Card Doctor is a thin, flexible, transparent plastic sleeve that covers a consumer's payment card in an effort to protect it. According to the company's website, it's sold 1 million units of the Card Doctor since 2014.