Its merchants can now give Telefónica customers the option to charge up to 30 euros directly to their phone bill.
This is the latest high profile deal in the exploding pay by mobile space that is allowing operators to play in the online e-commerce market.
It opens up web purchases to consumers who don't have a credit card, or don't wish to use one.
PaymentOne is emerging as one of the busiest players in the sector, recently hitting the $5bn total for digital transactions.
Its partnership with Telefónica Germany also enables one time transactions, recurring subscriptions, in-app billing and web billing.
Telefónica Germany's existing direct billing system is called mpass. It's also used by Telekom and Vodafone.
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“PaymentOne is an established market leader in carrier billing with the financial stability and the broad product spectrum we look for in a payment partner,” said Robert Erdmann, manager direct-to-bill & enabling services, Telefónica Germany.
PaymentOne currently connects over 3 billion consumers with merchants in over 70 countries.
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