A payment system and method using a mobile telephone network for charging and settlement, which comprises a user's cell phone being associated with a payment account, and the user's cell phone accessing the international payment and settlement center. The international payment and settlement center generates a payment code according to the amount of payment, which is transmitted to the user's cell phone. The user uses said payment code to pay the merchant's POS machine. The POS machine reads said payment code and requests authorization for the transaction from the international payment and settlement center. The international payment and settlement center authorizes said transaction after verifying the correctness. During settlement, the international payment and settlement center collects the money of said transaction from the payment account of the user, and pays the money that should be charged by the merchant in this transaction to the receipts account of the merchant.