Digital Signature vs Electronic Signature: The Difference

People throw around "digital signature" and "electronic signature" like they mean the same thing. They don't. The difference matters, especially when money, contracts, or legal compliance are on the line. If you've ever wondered whether your e-signature is legally binding or whether you actually need a digital signature, this guide breaks it down clearly.

Here's the short version: every digital signature is an electronic signature, but not every electronic signature is a digital signature. Think of it like squares and rectangles. A digital signature is a specific type of electronic signature that uses cryptographic technology to verify identity and protect document integrity. An electronic signature is the broader category that covers anything from typing your name to clicking "I Agree."

Now let's get into the details.

What Is an Electronic Signature?

An electronic signature is any electronic indication that a person agrees to the contents of a document. That's it. No special technology required.

Here's what counts as an electronic signature:

• Typing your name into a signature field on a contract
• Drawing your signature with your finger on a phone screen
• Clicking "I Accept" on a terms of service page
• Pasting an image of your handwritten signature into a PDF
• Checking a box that says "I agree to these terms"

The legal weight comes from intent, not from the method. If you meant to sign, and there's a record showing you did, it counts. Courts in every major jurisdiction accept this.

Most everyday business happens with simple electronic signatures. Freelance contracts, NDAs, employment offers, vendor agreements, lease documents -- all of these work perfectly fine with a basic e-signature. You can create and sign contracts on CanUSign using exactly this approach, and they're fully enforceable.

What Is a Digital Signature?

A digital signature is an electronic signature that adds a layer of cryptographic security. It uses something called Public Key Infrastructure (PKI) to create a mathematically unique fingerprint for each signature.

Here's how it works in plain terms:

1. You get a digital certificate from a Certificate Authority (CA) -- a trusted third party that verifies your identity.
2. When you sign, the software creates a hash (a unique string of characters) from the document content.
3. That hash gets encrypted with your private key, creating the digital signature.
4. Anyone can verify it using your public key. If the document was changed after signing, the hash won't match, and the tampering is immediately obvious.

This means a digital signature does two things that a regular electronic signature doesn't:

• Authentication: It proves who signed, backed by a certificate from a trusted authority.
• Integrity: It proves the document hasn't been altered since signing.

Digital signatures are common in government filings, pharmaceutical submissions, financial transactions, and anywhere regulations demand the highest level of assurance.

Digital vs Electronic Signature: Key Differences

Here's a side-by-side comparison to make the distinction clear:

For 95% of business use cases, a standard electronic signature is all you need. Digital signatures matter when regulations explicitly require them.

Are Electronic Signatures Legally Binding?

Yes. In virtually every country that matters for business, electronic signatures carry the same legal weight as handwritten ones. This has been settled law for over two decades.

But the specific rules differ by country. Here's what you need to know:

The eIDAS Tiers Explained

Since eIDAS applies across the entire EU (plus EEA countries), it's worth understanding the three levels:

Simple Electronic Signature (SES): The baseline. Typing your name, drawing a signature, clicking a button. No identity verification required beyond what the platform provides. Valid for the vast majority of commercial contracts. This is what CanUSign provides.

Advanced Electronic Signature (AES): Must be uniquely linked to the signer, capable of identifying them, created using data under the signer's sole control, and linked to the signed data so any changes are detectable. Think two-factor authentication plus identity checks.

Qualified Electronic Signature (QES): An AES created with a qualified electronic signature creation device, based on a qualified certificate issued by a trust service provider. Under eIDAS Article 25(2), a QES has the equivalent legal effect of a handwritten signature. Period. No court in any EU member state can reject it.

Here's the thing most people miss: SES is legally valid for almost everything. You only need QES when a specific national law requires it -- which covers a narrow set of documents like certain real estate transactions in some EU countries.

When Do You Need a Digital Signature?

Most people don't. But there are scenarios where a digital signature (with certificates and PKI) is either required or strongly recommended:

• Government procurement and filings. Many government agencies require digitally signed documents with certificates from approved providers.
• Pharmaceutical and healthcare submissions. FDA 21 CFR Part 11 in the US and EU Annex 11 require specific electronic signature standards for drug approval documentation.
• Financial services compliance. Some banking regulations and securities filings demand certificate-based signatures.
• Turkish contracts requiring QES. Under Law No. 5070, qualified electronic signatures must come from Turkish ICTA-accredited certificate providers. If you're doing business in Turkey and need QES-level compliance, you need a Turkish-accredited digital certificate -- international e-signature platforms won't cut it.
• Cross-border government documents. When dealing with multiple government agencies across different countries, digital certificates provide a standardized trust framework.

For everything else -- freelance contracts, rental agreements, NDAs, employment letters, prenuptial agreements, vendor agreements, consulting engagements -- a standard electronic signature is fully sufficient and legally binding.

How to Sign Documents Electronically with CanUSign

Getting a document signed shouldn't take more than a few minutes. Here's how it works:

1. Go to canusign.com/create and upload your document (PDF, Word, or start from scratch).
2. Add signature fields where you and the other party need to sign.
3. Send it. Enter the signer's email address. They get a link.
4. They sign. No account needed. They open the link, review the document, type or draw their signature, and confirm.
5. Done. Both parties get the signed document with a full audit trail -- timestamps, IP addresses, and consent records.

The whole process takes about two minutes. Every signature is legally binding under the ESIGN Act, eIDAS, and equivalent laws in 180+ countries.

Pricing starts at EUR 1 per contract for pay-as-you-go, or EUR 15/month for unlimited documents. No annual contracts, no setup fees, no hidden costs.

If you need a starting point, check out our freelancer contract template or how to sign contracts online guide.

Frequently Asked Questions

What is the main difference between digital and electronic signatures?

An electronic signature is any electronic mark showing you intend to sign a document -- typing your name, drawing with your finger, or clicking a button. A digital signature is a specific type of electronic signature that uses cryptographic certificates (PKI) to verify the signer's identity and ensure the document hasn't been tampered with. Think of electronic signatures as the broad category and digital signatures as a high-security subset.

Is an e-signature legally binding?

Yes. Electronic signatures are legally binding in over 180 countries. In the US, the ESIGN Act (2000) and UETA confirm this at federal and state levels. In the EU, the eIDAS Regulation makes them valid across all 27 member states. The UK, Japan, Turkey, Canada, Australia, and virtually every other major economy have equivalent laws. For most contracts, a simple electronic signature is all you need.

Do I need a digital signature for my business contracts?

Probably not. Standard electronic signatures (SES under eIDAS) are legally sufficient for the vast majority of business documents: freelance agreements, NDAs, employment offers, vendor contracts, lease agreements, and more. Digital signatures with certificates are typically only required for government filings, regulated industries (pharma, finance), or specific compliance scenarios. Unless your industry or local law explicitly requires certificate-based signatures, a regular e-signature works.

Are electronic signatures valid in Turkey?

Yes, but with an important caveat. Turkey's Electronic Signature Law No. 5070 recognizes electronic signatures, but Qualified Electronic Signatures (QES) must use certificates from providers accredited by Turkey's ICTA authority. International platforms like DocuSign are not recognized as qualified signature providers under Turkish law. For standard commercial contracts, a simple electronic signature is still valid. But if a Turkish law requires QES specifically, you need a Turkish-accredited certificate provider.

Can someone dispute an electronically signed contract?

They can try, but it's actually harder to dispute than a paper signature. E-signature platforms record detailed audit trails: the signer's email address, IP address, browser information, exact timestamps for when they opened and signed the document, and their explicit consent to sign electronically. This evidence package is typically far more detailed than anything a handwritten signature provides. Courts regularly uphold electronically signed contracts based on this audit trail evidence.

Ready to Sign?

The difference between digital signatures and electronic signatures comes down to this: digital signatures use certificates and cryptography for maximum security, while electronic signatures cover the broader category of any electronic indication of agreement. Both are legally binding.

For everyday contracts, you don't need the complexity of digital certificates. A standard electronic signature does the job, is recognized worldwide, and takes minutes instead of days.

Sign your first document on CanUSign -- starting at EUR 1, no subscription needed. Upload your contract, send it for signing, and get it back signed in minutes. Your next deal shouldn't have to wait for a printer.