Small businesses have been given a new and easier way to process online payments through a partnership between accounting firm FreeAgent and payment processing company Stripe.

The new scheme will allow small businesses to accept invoice payments by credit card, removing the need for a payment gateway or merchant account to manage the payments.

Transaction speeds and reduced costs for businesses are the two main benefits of the scheme, as high service charges will be removed for customers who pay directly from their bank accounts.

CEO of FreeAgent Ed Molyneux said: “We know that one of the toughest things for small businesses and freelancers is chasing their customers for payment. And when you’re waiting for cheques to come in the mail or having to set up the infrastructure for other payment methods, this can be a big distraction from actually running and growing your business.

“By integrating with Stripe and giving small business owners a more efficient and cost-effective way to accept invoice payments by credit card, this will allow them more time to manage the rest of their business affairs.”