A token is being used to generate random codes every 30 seconds, which are then used as part of a user's login process. The UK is due to take part in a pilot of the scheme later this year.

Consumers will have to pay $5 for the tokens, which are physical, rather than virtual, pieces of kit. However, the tokens will be free of charge for PayPal's business customers.

The initiative aims to beat phishing attacks - which have been repeatedly targeted against PayPal users by cyber criminals attempting to access login details.

John Pescatore, from IT company Gartner, told the BBC:

"PayPal has been one of the top targets for phishing attacks for many years.

"They had to do something because they have been targets for so long."