previous icon Back to blog
Jan 27, 2022
4 minutes read

Electronic Signature Vs. Digital Signature: How Are They Different?

Gathering pen-and-paper signatures is inconvenient and more difficult than ever in the COVID-19 era, driving the need for electronic and digital signatures. Discover the key differences between electronic signatures and digital signatures in this helpful guide.

The global electronic signature market is projected to grow from $2.8 billion in 2020 to $14.1 billion by 2026.

As e-signatures gain widespread adoption, the terms "electronic signature" and "digital signature" are often used interchangeably. However, these terms have distinct differences you’ll want to know before selecting one over the other. 

What Is an Electronic Signature?

Electronic signatures refer to verifications applied to a document electronically vs. a signature on a physical piece of paper. These "signatures" (which don't always resemble your handwritten signature) affirm agreements or transactions between people or entities. 

The electronic IDentification, Authentication and trust Services (eIDAS) oversees electronic identification and trust services for electronic transactions in the European Union's internal market. It regulates electronic signatures and their embedding processes to provide a safe way for users to conduct business online.

Besides that, there is the Electronic Signatures in Global and National Commerce (ESIGN) Act is the U.S. law that facilitates e-signatures. Under the ESIGN Act, electronic sounds, symbols, or processes can constitute an e-signature, as long as it’s attached to a contract with the intent to sign. 

Electronic signatures are ideal for:

  • Government agencies
  • Banking, finance, and insurance businesses
  • Human resources
  • Real estate, legal, and consultancy businesses
  • Healthcare

Electronic signatures are easy to use via an electronic signature app. Once documents are uploaded and sent to signers, recipients can digitally sign these files on their laptops, desktop computers, tablets, mobile phones, or any other device.

After signatures are obtained, documents are time-stamped and secured with a certificate. This added security layer gives your document a unique digital signature that is legally equivalent to a written signature.

What Is a Digital Signature?

A digital signature is the technology that proves the authenticity of a document. Digital signatures require a digital certificate from a certificate authority to vet a user's identity. The certificate is bound by cryptography to the signed document, creating a unique digital fingerprint. 

Digital signatures also embed a public key infrastructure (PKI) into the signing process. PKIs generate two keys— one public and one private — to identify the signer and the entity requesting the signature. Both the digital certificate and PKI provide stringent identification and security for sensitive legal documents.

Certain states and regulatory bodies require digital signatures over electronic signatures alone. 

Electronic Signature vs. Digital Signature

Electronic signatures are digital symbols that a signer applies to a contract while digital signatures use encryption methods to authenticate digital documents. While both signatures are legally binding, electronic signatures replace traditional signatures.

Electronic Signatures:

  • Use standard methods (employee ID, email, or multi-factor authentication) to authenticate a signer’s identity
  • Verify document authenticity
  • Are equivalent to a handwritten signature
  • Use audit trails to validate signed documents
  • Are easy to apply via electronic signature apps

Digital Signatures:

  • Use sophisticated certificate-based identification methods
  • Secure document integrity
  • Are not equivalent to a handwritten signature
  • Use encryption to verify the authenticity of signed documents
  • Require third-party verification

Start Sending Secure Electronic Signatures With Sign

Are you ready to start sending electronic signatures? Signing paper documents is outdated, expensive, and time-consuming. 

CM.com's Sign offers unparalleled support and includes more basic package features than any other e-signature product.

Check out some of Sign’s unique features:

  • Unlimited Users: Sign as many users as you want – no extra charges. 
  • Faster Results: On average, companies that switch to Sign complete contracts, agreements, and documents up to seven days faster, without printing or scanning! 
  • Unique Pricing Model: Pay a fixed price only when a document is completed, not when you send it. No signature = no costs. 
  • Safe and Secure: We focus on flexibility without compromising on security, compliance, or confidentiality.
  • Get Started Fast: No special software, app, or program installation is needed. Collect electronic signatures via our web-based platform or API. 

Check out Sign today! Send your first three documents free, no strings attached.

Was this article interesting?
Share it!
Tags
CM.com
connects tens of thousands of companies with millions of consumers via their mobile phone each day. Behind the scenes, from our innovative platform, CM.com makes sure companies can use these millions of messages, phone calls and payments to become part of people’s lives.

Latest Articles

blogimage-sign-verzekeraar
Apr 06, 2022 • Customer Experience

How to Easily Digitize Insurance With Smart Solutions

Consumers are not yet used to handling insurance matters online and mobile, yet they prefer it. This means that insurers need to be accessible everywhere and at all times, but they are not yet responding to this sufficiently. KPMG's research among 70 executives of international insurers shows that they know this all too well. They expect to lose a large portion of their sales to InsurTech or FinTech companies. However, this is easy to avoid without shaking up the entire IT landscape. With CM.com's intelligent solutions, insurers can easily and quickly take steps towards digitalization. In this blog, you can read which steps.

sign-everywhere
Dec 19, 2021 • Sign

Sign Documents on the Go via SMS, Email or WhatsApp Business

Digital signatures have become a key part of business systems – particularly as remote and hybrid working has risen in popularity. Sign offers unique benefits for your business that eliminates bottlenecks whilst reducing your organization's environmental impact.

How to Create an E-Signature?
Dec 19, 2021 • Sign

How to Easily Create an Electronic Signature in 5 Steps With Sign

Research suggests that many individuals continue to believe that creating an e-signature is a complicated process. This means that many of them stick with the status quo - using traditional “wet” signatures even though they are associated with higher costs, lower productivity levels, and a more harmful impact on the environment.

sign-wet-dry-signatures
Aug 04, 2021 • Sign

Weighing Up the Benefits of Wet and Dry Signatures

Businesses are increasingly adopting dry or electronic signatures in order to streamline the contract process, reduce their environmental footprint, and lower costs.

benefits-electronic-signature
Jul 25, 2021 • Sign

11 Benefits of Switching to Electronic Signature Software

Has your business made the shift to using esignatures yet? If you’re curious about the benefits of electronic signatures for your business, you’ve come to the right place. In this blog, we’ll share the benefits of esignatures — plus everything you need to know about CM.com’s electronic signature product.

Is this region a better fit for you?
Go
close icon