Digimarc Corporation announced that a 10‑week pilot of its watermark‑based gift‑card security solution was completed in ten Schnucks Markets stores in the St. Louis area, producing no fraud incidents and accelerating checkout times for customers.
During the pilot, 87% of cashiers reported that Digimarc‑secured cards activated as fast or faster than traditional gift cards, while the system recorded zero fraud incidents across the ten stores. The solution was described as more than three times more secure than conventional card‑only security features, according to Digimarc’s data.
The pilot is part of Digimarc’s broader strategy to expand its gift‑card fraud‑prevention offering across the U.S. retail sector. The deployment involved a partnership network that includes Schnucks, Blackhawk Network, Westrock, STL Labels, and Zebra Technologies, illustrating the company’s ecosystem‑driven approach to authentication.
CEO Riley McCormack said the results demonstrate the power of watermark‑based authentication, while Chief Product Officer Ken Sickles highlighted the collaborative effort and the “exceptional results” of the Schnucks implementation. Schnucks auditor Dianna Kaiser noted that the solution will significantly mitigate persistent gift‑card fraud in the retail sector.
The zero‑fraud outcome reduces potential financial losses for Schnucks and improves the customer experience through faster checkout, positioning Digimarc as a leader in authentication technology. The success of this pilot could drive future revenue growth for Digimarc, helping to offset declining annual recurring revenue in other segments. No immediate market reaction has been reported, but the achievement supports the company’s narrative of strong execution in its core authentication business.
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