The Swedish Way of internet banking

As I finally got my bank-account in Sweden I also got my "codes" for the internet bank. Except for that the codes are in a machine that looks like a small calculator and you have to insert your card in there. The thing looks like this:
So everytime you want to log-in to the internet bank you have to 1: put in a code to the machine the internet bank gives you 2: remember your card-code and 3: put the code the machine gives you in the internet bank and then finally you can log-in. It's a bit more annoying than at home where you have the codes on a piece of paper that is easy to bring with you and you only have to remember your own usercode for the internet bank.

And finally I got my Ica-card as well and I was thrilled to get another little machine:

I hope this enhances the security or something becuase I really don't see the point.

Or perhaps it's an environmental thing? If it uses less energy and resources, making the small machines in china once (which will have to be shipped over?) or making the paper bits with codes several times. I wonder....