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At the moment I have implemented support for Yubikey (http://yubico.com/products/yubikey/). It does not offer all the same functions as Umikey, but all you need to pay for is the hardware itself....

Well, thanks for the advice and input. This discussin has proven helpfull, and since this topic is not wery much discussed around the net it's hard to get any feedback at all. So every bit of input...

The reason I want to use 2FA is simple. Users are not able to choose a secure password and store it in a safe way. Therefore the "something they know" aspect isnt safe enough in my oppinion....

Sounds fair enough. I'm not looking for same security as online banks, but I'm aiming close.
So what I have now is regular username/password login with a one time password sendt to the user on...

I'm working on a web service that needs two factor authorization, and therefore I need a way of securely distributing one-time passwords. The primary method will be sending a SMS to the users phone...