The practice of transmitting payment requests and related banking information electronically, specifically formatted to resemble a traditional paper instrument, addresses the need for remote financial transactions. This process utilizes secure digital channels to deliver the equivalent of a negotiable instrument, enabling payment without physical exchange.
Adopting this method improves efficiency by reducing processing times and physical handling costs. It provides enhanced security features compared to conventional mail, minimizing the risk of loss or theft. Its evolution reflects the growing demand for digitized financial solutions to streamline operations and improve accessibility.