Digital Signature vs Electronic Signature: What’s the Difference?

What differentiates a digital signature from an e-signature?

Digital signatures can be used to sign agreements and contracts online, but what is the difference between a digital signature and an electronic signature? 

In this article, we give an overview of the differences between an electronic signature and a digital signature and in what instances you might use each of them.

Electronic signature meaning explained: How it compares to digital signatures

Electronic signatures are a category of methods for digitally signing a document. Electronic signatures are fast to set up and simple to create. Docusign eSignature is an example of electronic signature software. You can use electronic signatures on many different types of contracts. 

Similarly, a digital signature is one type of electronic signature, but is usually used in industries that are regulated or where additional signer identity verification is required. The use of a digital signature provides higher levels of signer assurances, given they must often confirm their identity prior to applying their digital signatures. There are a range of digital signature types for which digital certificates can be issued to signers in real-time. 

Digital signature technology can be used with an electronic signature to make a document more secure, and digital signatures usually have a detailed audit trail which enables parties to identify when specific changes have been made to a document, who it’s been signed by and by when.

What is a digital signature?

So, what is a digital signature, and how do you use one online? Digital signatures are digital records that offer additional safeguards against tampering and forgery. Some say that digital signatures are like ‘electronic fingerprints’. 

What’s more, digital signatures are based on a technology standard called Public Key Infrastructure (PKI). PKI is used to create a tamper-evident “digital certificate” that is unique,and associates each signer with a document. They provide a higher level of authentication than a basic electronic signature and comply with strict regulations, including the UK and European eIDAS regulation and the Electronic Identification and Trust Services for Electronic Transactions regulations.

Two digital signature types are accepted online in the UK that provide a stronger signer authentication or ID verification than a simple electronic signature (SES). Both of these methods offer higher levels of legal validity and extra security when signing documents:

• Advanced Electronic Signature (AES):

If you create a digital signature online using AES, it will likely include additional authentication steps such as:

• Signers are asked to capture an image of their government-issued identity  document to confirm their identity along with a unique access code following the signing process. The identification required may be a passport or Driving Licence, for example.

• A digital certificate is generated and attached as part of this transaction and is linked to detect any subsequent changes. This way of signing is usually used when the transaction taking place is of a high value or in a highly-regulated industry.

• Qualified Electronic Signatures (QES): 

  • A QES requires that a digital certificate is issued by a qualified trust service provider (QTSP) via a Qualified Signature Creation Device. 

  • This requires that the person signing the document completes a face-to-face, or equivalent, identity verification from a certified QTSP. It’s used when even more advanced security measures are needed than that offered by AES. It’s considered the legal, digital equivalent of a handwritten signature. 

When would you most likely use a digital signature rather than an electronic signature?

Regulated industries, governmental entities or specific UK and European use cases may require or prefer digital certificate-based signatures, as they offer a heightened level of identity verification and assurance compared to electronic signatures.

Advanced Electronic Signatures (AES) are often required for financial services transactions or those involving legal or government documents. AES are often required by HR when onboarding new employees, too. Digital signatures are often used when an extra form of identity is required. 

There are a few instances where a Qualified Electronic Signature (QES) is required by national law for certain agreements, and only qualified electronic signatures are explicitly recognised to have the equivalent legal effect of hand-written signatures all over the EU Member States. Given the proliferation and commoditisation of QES, and with the emergence of eIDAS 2.0, many businesses are turning to QES as the de-facto signature type for their business, given the higher levels of legal validity and signer assurances they provide. 

Additionally, organisations may choose it for certain agreements.

As part of the European Union, IKEA Portugal must use advanced solutions like Qualified Electronic Signatures (QES), which are considered legally equivalent to handwritten signatures under the eIDAS framework.

This helps maintain the integrity and security of agreements across the region while optimising digital processes.

In the UK, HM Land Registry recently announced that they are now not only accepting, but actively encouraging the use of QES by conveyancers when submitting applications.  

Find out more information on how digital signatures work.

Electronic vs digital signature examples

Understanding how electronic and digital signatures are used in practice helps clarify their differences. Below are common examples of when each type is typically applied:

Electronic signature examples

• Signing an offer letter or employment contract online using Docusign eSignature

• Approving a sales agreement with a typed or drawn signature

• Clicking “I agree” on an online terms of service form

• Electronically initialing a rental agreement via a mobile app

• Signing a non-disclosure agreement (NDA) with no extra ID verification

Digital signature examples

• Signing a loan agreement in the financial sector using an Advanced Electronic Signature (AES)

• Government-issued certificates or permits requiring identity verification and tamper-proof audit trails

• Signing a medical prescription or sick leave form with a Qualified Electronic Signature (QES)

• Legal documents that require compliance with eIDAS or other regional digital signature standards

• Cross-border agreements involving sensitive data or high-value transactions

Find out more information about digital signature vs. electronic signature: when to use each.

How does the security and verification process differ between digital and electronic signatures when using Docusign?

There are additional forms of security completion required when using a digital signature. As a Certificate Authority (CA), you can always send a document with a digital signature by using Docusign. Alternatively, you can use a 3rd party Certificate Authority and still access the rich features of Docusign cloud services for transaction management.

Docusign offers Simple Electronic Signature (SES), Advanced Electronic Signature (AES) and Qualified Electronic Signatures (QES). QES requires face-to-face identity verification, or the virtual equivalent, with certified human agent review taking place synchronously each time. As a result, it’s the only form of digital signature that UK and European Union law considers as the equivalent of a handwritten signature. They are often used for high-value, regulated, or cross-border agreements. 

AES requires that signatures must be linked to the signer. Advanced electronic signatures do require a level of identity verification, albeit not as thorough as QES. They are based on security certificates that uniquely identify the signer of the electronic document. There are many methods to generate and verify these AES certificates.

Digital Wallets can also be used to help streamline the time it takes to complete a digital signature by enabling signers to securely store proof of their completed identity verification and easily apply it to subsequent agreements. 

Docusign and digital signatures online

Docusign is on the EU Trust List, which means that they are authorised to issue qualified electronic signatures across the EU, which are also accepted in the UK. Docusign can also issue Advanced Electronic Signatures and provides flexible options to verify the identity of signers, including using Docusign ID Verification or ID Verification Premier. You can also find out more about digital signature support with Docusign.

Find out more about Docusign’s digital signature portfolio. . Around the world, there are international standards that specify requirements for digital signatures and the methods used to authenticate a signer.