A system for multi-factor security involving multiple secure devices that distribute the secured functions of the system over the different devices, such that the loss or theft of any one of them does not compromise the overall security of the system. Moreover, a configuration of devices is also secure even if one of them has been attacked by malicious software agents, such as “keyboard sniffers”. A novel contactless smart card reader (200) is presented that incorporates a transceiver antenna (220) within a keypad (210) of a device used with contactless smart cards (100). When the card (100) is pressed against the device's keypad (210), the transceiver (220) of the device establishes a session with the smart card (100). A variety of systems are presented, including those using mobile telephones, computer-interfaced card readers, personal digital appliances, and television set-top box remote controllers.