The development of ParaBill was initiated by Parabell AB in 2001. It was initially developed as acharging engine for digital content. The fist version, 1.0, was released in 2001. In 2003 the second major version was released. ParaBill had now grown to be a small billing system for Mobile Service Providers. Version 2 of ParaBill had grown to handle necessary features that enabled a full blown Mobile Service Provider to manage his customers when it comes to customer and subscription charging and rating.
Due to market conditions the development was put on hold for some years and in 2006 the ownership of ParaBill was transferred to the original developers no longer part of Parabell AB. The intention was to release ParaBill as an Open Source solution and in May 2006 the first version of ParaBill as an Open Source solution was released publically.