Digital signature vs. electronic:
Is there a difference?

It’s easy to confuse the two terms

It’s very easy to confuse digital signature and electronic signature. First, the two terms are often used interchangeably. And to add to the confusion, some languages don’t make a distinction. 

In this guide, we’ll walk you through the differences between digital and electronic signatures to help clear things up. You’ll learn the key features of each term, examples of what they encompass and how they can be applied. Above all, you’ll learn how to ask esign providers to be specific regarding what their services include.

What is a digital signature?

A digital signature is a method for ensuring the integrity of digital documents. It’s like a fingerprint that is unique to that document. As with our own human fingerprints, it’s impossible for any other document to have that same digital signature.

Types of electronic signatures and agreements

There are various methods for expressing agreement, consent and acknowledgment in a digital environment, including:

• clicking a button to agree to on-screen text, such as terms and conditions
• clicking and/or drawing your signature to sign an electronic document
• making a sound or video recording of a verbal acknowledgment
• authenticating your identity using a means of electronic identification (eID)

Not all of these will qualify as an electronic signature, and which method to use depends on the situation. Because the legal effect of these methods can vary greatly, factors such as cost of implementation, ease of use (customer experience), legislation, company policies and assessed business risk usually determine which one to use in a given situation. 

Even in the category of electronic signature, there are different levels, and which level is appropriate for a given situation will depend on the same factors mentioned above. These levels are explained further in the Scrive Trust Center.

What makes an electronic signature legally binding?

To conform with global contract law, a signature, whether electronic or on paper, must fulfil three key requirements. If someone challenges the validity of a signed document, you must be able to show evidence of: the signing party’s intent to enter into a binding agreement, the signing party’s identity and the document’s integrity, i.e., that it has not been altered.

This third requirement, document integrity, is why you need a digital signature.

The differences at a glance

Whereas an electronic signature is evidence of the document signatory’s agreement, a digital signature is evidence that the document itself is authentic. They work in tandem, and both are needed to make a digital agreement verifiable and legally enforceable.