Telefonica SA said July 5 that it is working with Facebook , Google, Microsoft and Research in Motion to allow customers to pay for digital goods with their smartphones.

The Spanish broadband and telecommunications company said it will use its direct-to-bill payments services to allow users to buy apps and make in-app purchases on their phones.

Telefonica owns the British mobile carrier O2.

"Few organizations can claim to have a direct billing relationship with hundreds of millions of customers globally," says Matthew Key, Telefonica's chairman and chief executive of its digital division, in a press release. "The creation of Telefonica digital has allowed us to better harness the power of their capability."

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