SMS: what does "Dialing Mode for SMS" setting do?

In the “Message Service (SMS/MMS)” section on the Manage DIDs page, there is a setting named Dialing Mode for SMS (API). What’s it for? There are two possible options: NANPA and E164. Does it have anything to do with using the voip.ms softphone app for sending SMS messages? I want to be able to send SMS messages to European numbers, for which the E164 format is preferred. It’s the same format used to dial international voice calls on cellphones: +.

The Wiki topic on SMS suggests that voip.ms doesn’t support non-North American destinations, but if that were true, it’s not clear why there would be an option for E164 when addressing SMS messages.

It tells the API what style of phone‑number formatting you’re going to use: NANPA means you send a 10‑digit North American number, and E164 means you send a full “+country‑code” number.

Is the API used by the Messages feature of the VoIPmsSoftphone app?

Or is the API used for some other programmatic interface to the voip.ms system?