This feature is based on the interaction between special color pigments and simple magnets, such as those found in the speakers of mobile phones. These color pigments align along the magnetic field lines when the banknote is placed over a magnet and make the feature visible. A high-contrast change of the image appears on the banknote, allowing users to verify its authenticity instantly. The image can be generated by any magnet that is readily available, such as those used in handbag clasps, or those employed in electronic theft-prevention systems at store checkout counters.
MAGnite is based on functional pigments in specific inks. In order to ensure that an instantaneous switch between two color effects takes place reliably at any time, the pigments are enclosed and protected in highly durable microcapsules, which were developed by G&D. The pigments in the capsule must have full freedom of movement so that they can be aligned in any desired direction when external magnetic forces act upon them to reveal their color in a certain pattern. Different types of magnets produce different patterns or images.