I received PayPal Security key in the mail today. I have been waiting for three weeks for it to arrive. Activation was easy. Thank you PayPal. I hope more companies follow your lead.
I tried my PayPal Security Key on the MyPW website. The hope was I could activate it there as well. It didn't work. I was not expecting it to.
I'm still seeking the perfect login process. I'm excited because I see hope. I think MyPW has it right. For a very small fee they provide an authentication service with that can be used by any Internet connected program. It is possible for you to login to your desktop at home, your MySpace account, your email at GOOGLE, your PayPal account and even your bank by logging into any one of them once if they used OpenID. You could then choose an OpenID provider like myOpenID.com , claimID.com, or MyPW.
The last big issue is PASSWORDS SUCK! There are simply to many ways to get someones password from keystroke loggers to just looking over someones shoulder. For feel this destroys the value of a single sign-on service like PassPort. (Now called Windows Live ID.)
The Key-bob provided by MyPW fixes the password problem. The key-bob contains a one time pad (OTP) known only by the key-bob and the provider (MyPW). It can not be guessed. Each login has a one in a million chance of getting it right. By adding a password to this and even if the key-bob gets lost, the person who find it can not access your account because they don't know your password. If someone records only records your password with a keystroke logger it will not work because they don't know the next complete password containing the next random number.