The solution described herein provides a system for issuing and redeeming digital coupons. This includes receiving a request for a digital coupon from a user device including a unique hardware identifier (ID). Then sending a first localization request and receiving, a first location of the user device. In response, generating a software object representing the digital coupon and including a security token, sending the software object to the user device, updating a status of the digital coupon as issued in a database, storing the unique hardware ID in the database, and associating the unique hardware ID with the digital coupon. Receiving a request to redeem the digital coupon from the user device. In response, sending a second localization request, receiving a second location of the user device, providing a redemption code, and updating the status of the digital coupon as redeemed.