CityPOST is launching a new nationwide postal service for businesses.
The independent postal service said its €0.79 PostPICK-UP cost will undercut the annual costs of existing providers by up to 21%.
CityPost Director Bob Phillips said the move marks a new departure for the company but he believes there is an opportunity to provide choice for customers in post in Ireland.
Mr Phillips said for business customers the company will "collect and deliver your mail for you.
"Typically if you look at the headline prices, it’s €1 now for An Post and its 79 cents, so we are actually giving people money back that they would spend anyway.
On the sustainability of the model, the CityPOST director said staff members will be appropriately rewarded to keep them with the company.
He said combining modern technology and post means people can be reached who haven’t used post before.
"We think there is a renaissance possible in post by using an approach which combined the electronic and post.
"Post is unique in that people tend to have a special place for it in their home".
Mr Phillips said it will be aiming to target a younger audience for post by using technology.