Digimarc and Honeywell Partner to Combat Gift Card Fraud and Streamline the Checkout Experience
MWN-AI** Summary
Digimarc Corporation (NASDAQ: DMRC) has partnered with Honeywell (NASDAQ: HON) to develop an advanced fraud prevention solution targeting the growing issue of gift card fraud. As the global gift card market soars from a valuation of $1.24 trillion in 2024 to an anticipated $2.31 trillion by 2030, the incidence of fraud has escalated, with losses increasing by 364% from 2018 to 2021. The partnership aims to enhance security measures and streamline checkout processes in retail environments.
By early 2026, Honeywell plans to integrate Digimarc’s innovative on-scanner software into its handheld retail scanners. This new digital security layer will enable retailers to automatically detect tampered gift cards, curbing fraudulent activations at point-of-sale terminals. The solution is reported to be three times more secure than traditional card-only features, eliminating the need for manual inspections by cashiers, which enhances operational efficiency and customer experience.
Retailers utilizing this enhanced system have noted significant reductions in fraud incidents, faster gift card scanning, and improved overall service quality for customers and staff alike. Digimarc’s Chief Product Officer, Ken Sickles, highlighted Honeywell’s pivotal role in refining the software, marking their collaboration as essential in delivering cutting-edge fraud protection and seamless checkout experiences.
David Barker, president of Honeywell Productivity Solutions & Services, emphasized the growing threat of gift card fraud and Honeywell’s commitment to developing innovative solutions that prioritize consumer safety and operational efficiency. The collaboration will be showcased at the upcoming NRF show in January 2026, offering retailers an opportunity to explore the integration of this transformative technology into their operational workflows.
MWN-AI** Analysis
The partnership between Digimarc and Honeywell is a promising development for retailers aiming to combat gift card fraud while enhancing the checkout experience. With the global gift card market projected to grow significantly, reaching $2.31 trillion by 2030, addressing fraud has become crucial. Reports indicate a staggering 364% increase in gift card fraud from 2018 to 2021, with 23% of U.S. consumers encountering empty gift cards. This context makes the integration of Digimarc's advanced fraud detection software into Honeywell's handheld scanners an attractive proposition for retailers.
Investors should view this partnership as a strategic move to capitalize on the surging demand for secure payment solutions. Digimarc’s end-to-end solution reportedly offers security over three times greater than traditional card-only features, which should resonate well with retailers concerned about financial losses from fraud. The ability to detect tampered cards at the point of sale not only safeguards revenue but fundamentally enhances customer trust—an increasingly valuable currency in retail.
As Honeywell prepares to roll out this updated software across its scanner portfolio by 2026, retailers adopting this technology stand to benefit from reduced fraud incidents and quicker transactions. These advancements streamline operations, providing a frictionless experience for consumers that could translate into higher sales and customer loyalty.
In terms of market positioning, both companies stand to gain significantly from this collaboration. Digimarc’s innovative identity solutions, coupled with Honeywell's established market presence, create a robust platform for growth. Investors might consider positions in both companies, focusing on their ability to innovate and address the needs of a rapidly evolving retail landscape. Overall, this partnership positions both Digimarc and Honeywell favorably in the competitive sector of retail technology solutions focused on security and efficiency.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Honeywell will integrate Digimarc’s latest on-scanner software across its handheld retail scanners by early 2026, enabling retailers to better protect customers and speed up checkout operations.
Digimarc Corporation (NASDAQ: DMRC), a leading provider of digital identity and authentication technologies, and Honeywell (NASDAQ: HON) have teamed up to help retailers and brands fight gift card fraud. The global gift card market was valued at $1.24 trillion in 2024 and is expected to reach $2.31 trillion by 2030, making it a growing target for bad actors. 1 Gift card fraud losses grew 364% from 2018 to 2021 and continue to increase year over year. 2 With 23% of consumers in the U.S. having given or received gift cards with no funds on them, gift card fraud is now a persistent problem. 3
Honeywell is one of the first manufacturers to configure its handheld scanners to detect Digimarc’s new digital security layer for gift cards, enabling retailers around the world to automate detection of tampered cards and prevent their activation at the point of sale. Digimarc’s end-to-end solution is over three times more secure than “card-only” security features and removes the need for cashiers to manually inspect or otherwise prepare cards prior to scanning. 4 Retailers using this solution report dramatically lowered incidents of fraud and faster gift card scanning, thereby improving the customer experience, making retail associates’ jobs easier, and bringing greater security and more seamless operations to the entire gift card ecosystem.
“Honeywell has been a great collaborator in preparing for broader retailer adoption of our next generation gift card solution,” said Ken Sickles, Digimarc’s Chief Product Officer. “The Honeywell Xenon XP™ 1950 was one of the first handheld scanners in production with our current on-scanner software. Equally important, Honeywell has been an invaluable partner as we developed our latest version of that software, which we released in November 2025.”
Honeywell has committed to rolling out this newest version of Digimarc software across its flagship handheld retail scanner portfolio by early 2026. “Digimarc and Honeywell understand that retailers and consumers demand excellent fraud protection, as well as a seamless checkout experience,” explained Sickles. “The latest version of our on-scanner software delivers a step-change improvement in tamper evidence and first-pass read rates, creating more robust fraud protection and greater scanning speed and efficiency at checkout.”
“Gift card fraud is a serious, pervasive and increasingly costly problem for retailers,” said David Barker, president of Honeywell Productivity Solutions & Services. “Honeywell is committed to delivering best-in-class solutions to protect retailers, brands and consumers. To this end, we look forward to incorporating the latest version of Digimarc’s on-scanner software in even more of our scanner models early next year to offer best-in-class fraud protection and deliver customers frictionless checkout experiences.”
Retail customers can contact Digimarc or Honeywell to request demonstrations and explore how to integrate this fraud reduction technology into their workflows. Honeywell will also be showcasing the Digimarc solution alongside all their retail scanning solutions at the NRF show (Booth# 3538) in January 2026.
About Digimarc
Digimarc (NASDAQ: DMRC) is building the trust layer for the modern world. As AI accelerates how we produce, share, and interact with the world, the risks of fraud, counterfeiting, and misinformation are growing exponentially. Our innovative, highly scalable, and ultra-secure solutions make it possible for consumers, businesses, and intelligent systems to instantly verify what’s real, protect what matters, and transact with confidence. Digimarc’s solutions for loss prevention, authentication, and digital are built to counter the speed and sophistication of today’s AI-enabled threats. Trusted by the world’s central banks to deter the counterfeiting of global currency, we exist to protect truth in every interaction, spanning both the physical and digital worlds. Learn more at Digimarc.com .
About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology, that help make the world smarter and safer as well as more secure and sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom .
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1 Gift Card Statistics (2025): Market Size & Consumer Trends
2 Gift Card Statistics (2025): Market Size & Consumer Trends
3 Gift Card Statistics (2025): Market Size & Consumer Trends
4 https://www.digimarc.com/resources/guides-papers/digimarc-risk-intelligence-gift-cards
View source version on businesswire.com: https://www.businesswire.com/news/home/20251124950365/en/
Media Contacts:
Wendy Renner
Digimarc Corporation
509-939-1137
Wendy.renner@digimarc.com
Carly Ingersoll
Honeywell
+1 (704) 626-1374
carling.ingersoll@honeywell.com
FAQ**
How will the integration of Digimarc’s on-scanner software by Honeywell International Inc. HON enhance the security measures taken against the rising trend of gift card fraud in the retail sector?
What implications does the projected growth of the global gift card market have for Honeywell International Inc. HON in terms of potential new business opportunities or challenges?
In what ways does Honeywell International Inc. HON expect the rollout of the latest Digimarc software to improve customer experience and operational efficiency for retailers?
How does the partnership between Digimarc and Honeywell International Inc. HON position both companies to mitigate the increasing costs associated with gift card fraud?
**MWN-AI FAQ is based on asking OpenAI questions about Digimarc Corporation (NASDAQ: DMRC).
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