Telefónica who owns O2 have secured a deal with companies including Google, Microsoft, RIM and Facebook which will provide customers with the ability to use their mobile devices to make digital payments.

The new system will allow users to carry out digital transactions including the purchasing of apps and charging payments directly to customers phone bill and effectively removing the need for a debit card.

The service is already being employed with over 400,000 customers in Germany already employing the Direct to Bill feature per month.