Deutsche Telekom, a European mobile network operator, has entered an agreement with Boku, a San Francisco-based carrier of billing-based mobile payments.

The agreement establishes Boku as a partner for Deutsche Telekom’s payments offerings and provides customers the ability to pay for digital goods and services using their existing mobile phone account.

Merchants who offer carrier billing-based mobile payments, according to Boku, will generate incremental revenue from consumers who find mobile the most convenient way to pay.

Boku suggests merchants will also be able to attract new customers who previously were unable to pay via other payment options, such as credit and debit cards.

James Patmore, managing director of EMEA for Boku, said: "Strategic partnerships with key carrier groups are what will drive the entire mobile payments industry forward.

"This deal is a key milestone in the continuing journey of making mobile payments an established payment system that is accessible to billions of consumers around the world," he added.

The partnership expands on a previous agreement between the two in Germany to cover Deutsche Telekom’s user base in Europe of over 140m subscribers across 14 different markets.

In December 2013, Boku partnered with Asian telecommunications company SingTel, to launch direct carrier billing in Singapore.

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