These are payment instruments, generally physical documents, issued and delivered immediately, often at the point of a transaction or service. They represent an obligation of the issuer to pay the stated amount to the payee. For example, a business might issue one of these to an employee after they have completed a work shift to provide immediate compensation.
The primary significance lies in the immediacy and accessibility they offer. Historically, they provided a crucial method for disbursing funds quickly, especially in situations where electronic transfers were unavailable or impractical. While the prevalence has diminished with the rise of digital banking, they still provide a tangible and verifiable method of payment in certain contexts, offering both convenience and a sense of security to recipients.
