Abstract: This invention discloses a compact dispenser and applicator of stamps from self adhesive postage stamp rolls that is particularly well suited for typical postage stamp users. The dispenser comprises a mechanism assembly that slides into a compact housing assembly attached with an applicator roller. The mechanism assembly comprises a stamp roll holding chamber, s stamp conveyer platen with a separator edge at its end for separating stamps from the backing paper, a backing paper spooler with a connector strap to attach to the free end of the backing paper and a ratchet wheel for rotating the spooler. When the ratchet wheel is rotated with a finger, the ratchet wheel causes the spooler to rotate and to spool the backing paper, thereby causing the backing paper to retract over the stamp conveyer platen and the separator edge. The retracting backing paper experiences an abrupt change of direction, thereby causing the stamp to separate from the backing paper.