Sentenial, an Irish financial software vendor, has introduced a new service, called Nuapay, which offers businesses a non-bank alternative for payment processing.

The launch follows a legislation introduced by the European Commission making it possible for non-banks to obtain a Payment Institution license.

Nuapay is a cloud-based payment service that will allow businesses to manage direct debit and credit transfer payments.

It has been designed for businesses that wish to start collecting direct debits for the first time or those who already process payments but now want a service at a better price.

Sentenial CEO Sean Fitzgerald said: "Regulation is usually a pain, but something great was buried deep in the EU’s Payments Services Directive which introduced SEPA. We spent ten years building best-in-class cloud based payments services for banks and businesses in Europe.

"Now we are making these great services directly available to all businesses, of every size, using our Payments Institution License. There is no need for a bank now."

Nuapay had processed payments across 34 European countries and manages payments worth billions of euro every month.