In Sweden it's the same. There are two types, the first one is the one you describe where you put the (chip) Visa / Mastercard / Maestro card. The other kind is just number pad + 7-segment LED. Even when using the (bank cooperation issued) smartphone ID app, you have to first sign some cryptography keys with your hardware fob.
That's interesting. I recently moved to Norway, and first had BankID on mobile, which used GSM level encryption to verify. They're deprecating that now for a regular BankID app. But even though it's supported, I don't think you can get the hardware fobs any more
