The Royal Mail today launched a new digital postage stamp aimed at small firms.

Called SmartStamps, the new system allows users to print stamps directly on to envelopes from a standard desktop computer.

SmartStamps can be printed for most UK and international mail and can be posted directly into post boxes or taken to a Post Office branch in the usual way.

To use SmartStamps small business users must download the free software from the Royal Mail web site or be sent a CD-Rom. There is then a monthly subcription of £4.99 or a yearly subsription of £49.99 to use the sytstem. The cost of the stamps printed is then deducted from a pre-paid user account.

Alison White, the Royal Mail's head of small business, said, "The SmartStamp service gives businesses clear visibility of their spending on postage. The online account provides a centralised record of all money spent on postage by the business."

The home printed stamps, which can be purchased anytime, day or night. will not contain the Queen's head. For the first time, small businesses will be able to add their own logo or designs to their envelopes.

"The ability to personalise the logo gives small businesses the opportunity to differentiate themselves from competitors and achieve a professional brand appearance more commonly associated with larger companies," said Ms White.

Meanwhile new research by the Royal Mail reveals firms waste £163 million a year by sending post to the wrong address or to companies which have moved offices.

The company said 69 per cent of all business letters contained at least one mistake, leading to 172 million items of mail being sent to organisations that had moved or ceased to trade.

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