The concept of 2-D barcodes is of great relevance for use in wireless data transmission between handheld electronic devices. In a typical setup, any file on a cell phone, for example, can be transferred to a second cell phone through a series of images on the LCD which are then captured and decoded through the camera of the second cell phone. In this study, a new approach for data modulation in 2-D barcodes is introduced, and its performance is evaluated in comparison to other standard methods of barcode modulation. In this new approach, orthogonal frequency-division multiplexing (OFDM) modulation is used together with differential phase shift keying (DPSK) over adjacent frequency domain elements. A specific aim of this study is to establish a system that is proven tolerant to camera movements, picture blur, and light leakage within neighboring pixels of an LCD.