Isn’t this less secure than using a secure hardware module, such as a smart card?
No. The security models of these two schemes are quite different. With SolidPass™, the user interface and token are under the control of the user. With a smart card, the keys are safe within the token but the user has little control over the user interface. An untrusted terminal can generate any number of signatures for any kind of transaction and is therefore open to attack. For example, after the user has entered his smart card and PIN code into an untrusted terminal device, the device can generate any number of signatures for any kinds of transactions without the user having any control over this. The mobile device, which is in the users own possession, can be considered a trusted device.