A few years ago, ANZ Bank offered such a device that they called FastPay. It connected to their mobile phone POS app and helped randomized the PIN entry on the app. Here's their marketing demonstration on it https://youtu.be/I27-B36SaAg?t=80

I'm not sure if it was so much to defend against this type of attack as it was to ensure that no software could intercept taps on the screen and derive your PIN. I believe that the part of PCI rules that cover PIN entry led to this implementation, since this is a mobile POS app running on a potentially hostile device. Typically, POS vendors build dedicated hardware for PIN entry because it's much easier to lock down a system that they have full control over, and thus comply with PCI rules.

(For what it's worth, PCI now has rules on software-based PIN entry on mobile phones.)