I have seen a number of conflicting reports as to whether the Yubikey works with an iPhone, so I thought I would post my results.
I bought a Yubikey VIP to use with my PayPal account and it seems to work well. I always use my Mac desktop for PayPal, but I thought I would try the VIP with Safari on my iPhone to see if it works. I used the Lightning to Camera adapter, and I get the standard "unsupported" error message when I plug in the VIP. But, if I click "OK" to dismiss the error message, the VIP outputs the code just fine with a button press. I was able to log in to PayPal with no problem by entering my UserID and password, touching the VIP code input field, plugging in the VIP, touching the button to generate the VIP code and touching the "Submit" button.
However, the OTP in Slot 2 didn't seem to work on the iPhone when I tested it on the Yubico site. Apparently the "Enter" at the end of the password string isn't recognized and it just sits there after the OTP is inserted into the input field. Unplugging the VIP to restore the on-screen iPhone keyboard and pressing the keyboard "Enter" results in a validation error. At the moment that isn't a big deal since this forum is the only place I know of to use the OTP in slot 2 and I'm not likely to post here from my phone.
I don't know if Slot 2 could be reconfigured to get around the Enter problem, but I'm reluctant to dump the factory configuration this early in the game since I don't know what other use I might have for Slot 2.
Anyway, the VIP part of the Yubikey works with PayPal via Safari on the iPhone with the latest iOS update (8.1.1).
W.
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