We present the design of a novel free-space quantum cryptography system, complete with purpose-built software, that can operate in daylight conditions. The transmitter and receiver modules are built using inexpensive off-the-shelf components. Both modules are compact allowing the generation of renewed shared secrets on demand over a short range of a few metres. An analysis of the software is shown as well as results of error rates and therefore shared secret yields at varying background light levels. As the system is designed to eventually work in short-range consumer applications, we also present a use scenario where the consumer can regularly 'top up' a store of secrets for use in a variety of one-time-pad (OTP) and authentication protocols. © IOP Publishing Ltd and Deutsche Physikalische Gesellschaft.