Barclays launched the cryptographic smart card reader, called PINsentry, to customers last July.
Gemalto said not one PINsentry online customer had suffered fraud since then. "User feedback has proven extremely positive and Barclays observed that customer acceptance was higher than anticipated by 30%," said a spokesman.
Barclays has increased the maximum amount for personal online transactions from an initial £1,000 to £10,000, and plans are in place to offer international payment for the purpose of worldwide funds transfers in the near future.
"Our goal was to provide our online customers with an easy-to-use, highly secure product to protect them against fraud," said Sean Gilchrist, digital banking director at Barclays. "Adoption of the PINsentry reader by 1m cardholders in a year is a clear demonstration that we made the right choice."
At the beginning of the month, Barclays announced it was offering full security software packages to online customers free of charge.
How PINsentry works
PINsentry allows Barclays customers to generate single-use passwords to authenticate themselves at log in. They also use it to sign transactions, which provides a higher level of security than passwords alone.
Users insert their usual chip-enabled bank card into the PINsentry reader and type in their card's Personal Identification Number (PIN) code.
The devices are portable and can be used to perform secure online transactions from any personal computer.