Google thinks there is a more secure way than passwords.
…they’re experimenting with new ways to replace the password, including a tiny Yubico cryptographic card that — when slid into a USB (Universal Serial Bus) reader — can automatically log a web surfer into Google. They’ve had to modify Google’s web browser to work with these cards, but there’s no software download and once the browser support is there, they’re easy to use. You log into the website, plug in the USB stick and then register it with a single mouse click.
They see a future where you authenticate one device — your smartphone or something like a Yubico key — and then use that almost like a car key, to fire up your web mail and online accounts.