Electronic Signature vs Digital Signature — What's the Difference?

The terms "electronic signature" and "digital signature" are often used interchangeably, but they refer to very different things. Confusing the two can lead to choosing the wrong tool, overcomplicating a simple task, or — in rare cases — using a signature method that does not meet the legal requirements for your situation.

This guide breaks down exactly what each term means, when you need one versus the other, and how to make the right choice for your specific use case.

What Is an Electronic Signature?

An electronic signature (often shortened to "e-signature") is any electronic indication of intent to agree to or approve the contents of a document. It is a broad legal concept, not a specific technology.

Examples of electronic signatures include:

• A name drawn on a touchscreen or trackpad using a signing tool
• A typed name in a cursive-style font placed on a document
• An image of a handwritten signature pasted onto a PDF
• A checkbox that says "I agree to these terms"
• A recorded voice authorization
• A click on an "Accept" button
• An email reply stating "I approve this document"

The defining characteristic of an electronic signature is intent. If you take an electronic action with the intention of signing or agreeing to a document, that action constitutes an electronic signature.

When you use a tool like SigPDF to draw, type, or upload your signature onto a PDF, you are creating an electronic signature.

What Is a Digital Signature?

A digital signature is a specific technical implementation that uses cryptographic methods to verify the identity of the signer and ensure that a document has not been altered after signing. It is a subset of electronic signatures — all digital signatures are electronic signatures, but not all electronic signatures are digital signatures.

Here is how a digital signature works at a high level:

1. The signer obtains a digital certificate from a Certificate Authority (CA) — a trusted third party that verifies the signer's identity.
2. The document is hashed — a mathematical function generates a unique fingerprint of the document's contents.
3. The hash is encrypted with the signer's private key, creating the digital signature.
4. The recipient can verify the signature by decrypting it with the signer's public key and comparing the hash to the document. If they match, the document is authentic and unaltered.

This process provides three guarantees that a basic electronic signature does not:

• Authentication: Proof that the signer is who they claim to be (verified by the Certificate Authority)
• Integrity: Proof that the document has not been modified since signing
• Non-repudiation: The signer cannot plausibly deny having signed the document

Key Differences at a Glance

| Aspect | Electronic Signature | Digital Signature | |---|---|---| | Definition | Any electronic mark indicating intent to sign | Cryptographic signature with certificate verification | | Technology | Varies (drawn, typed, clicked, spoken) | Public key infrastructure (PKI) and certificates | | Identity verification | Varies (often self-asserted) | Verified by a Certificate Authority | | Tamper detection | No built-in mechanism | Yes — any alteration invalidates the signature | | Legal validity | Broadly valid under ESIGN, UETA, eIDAS | Valid; may be required for specific regulated uses | | Cost | Often free | Certificate purchase typically required | | Complexity | Simple — anyone can do it in seconds | Requires certificate management and specialized software | | Common tools | SigPDF, DocuSign, HelloSign | Adobe Acrobat Pro, DigiCert, GlobalSign |

Legal Validity: Are Both Legally Binding?

Yes, but the details vary by jurisdiction and document type.

In the United States

The ESIGN Act (2000) and the Uniform Electronic Transactions Act (UETA) give electronic signatures the same legal standing as handwritten signatures for most purposes. There are a few exceptions where electronic signatures are not accepted, including:

• Wills and testamentary trusts
• Family law documents (adoption, divorce) in some states
• Court orders and official judicial documents
• Certain UCC transactions
• Notices of cancellation of utility services or health/life insurance

For everything else — contracts, agreements, authorizations, business documents — a simple electronic signature is fully legally binding.

In the European Union

The eIDAS regulation defines three tiers of electronic signatures:

1. Simple electronic signatures (SES): The broadest category. Any electronic data attached to other electronic data used for signing. Legally valid but offers the least evidential weight.
2. Advanced electronic signatures (AES): Uniquely linked to the signer, capable of identifying the signer, created under the signer's sole control, and linked to the document so that any change is detectable.
3. Qualified electronic signatures (QES): An advanced electronic signature created with a qualified certificate and a qualified signature creation device. This is the only type that carries the same legal weight as a handwritten signature automatically across all EU member states.

For most everyday documents, a simple electronic signature — the kind you create with SigPDF — is sufficient and legally recognized.

When to Use an Electronic Signature

An electronic signature is the right choice for the vast majority of signing scenarios you will encounter in daily life and business. Use an electronic signature when:

• Signing a contract or agreement — employment contracts, freelance agreements, NDAs, leases
• Authorizing a form — tax forms, insurance claims, school permissions, medical consent
• Approving a document — purchase orders, invoices, internal approvals
• Acknowledging receipt — delivery confirmations, terms of service agreements

In these situations, a simple electronic signature created with SigPDF is legally valid, universally recognized, and takes seconds to apply. Using a digital signature would add unnecessary complexity without providing meaningful additional benefit.

When to Use a Digital Signature

A digital signature is necessary when the situation demands cryptographic proof of identity and document integrity. Use a digital signature when:

• Government or regulatory compliance requires it — certain government filings, patent applications, and regulatory submissions may mandate digital signatures with qualified certificates
• High-value financial transactions — large-scale contracts, bond issuances, or banking documents may require certificate-based verification
• Software distribution — code signing certificates verify that software has not been tampered with since the developer signed it
• Sensitive legal proceedings — some courts and arbitration bodies require digital signatures for submitted evidence
• Cross-border transactions requiring QES — when dealing with EU institutions that require qualified electronic signatures under eIDAS

If none of these apply to your situation — and for most people, they will not — an electronic signature is all you need.

The Cost and Complexity Factor

Electronic signatures are effectively free. Tools like SigPDF let you sign documents at no cost, with no account, in under a minute.

Digital signatures involve significantly more overhead:

• Digital certificates cost money. Individual certificates from trusted CAs typically range from $20 to $300+ per year, depending on the level of validation.
• Certificate management is ongoing. Certificates expire and must be renewed. Private keys must be stored securely.
• Software requirements are stricter. You typically need Adobe Acrobat Pro or specialized signing software to create and verify digital signatures.
• Verification requires infrastructure. The recipient needs compatible software and access to the CA's verification chain.

For organizations that need digital signatures, these costs are justified. For individuals signing everyday documents, they are entirely unnecessary.

How SigPDF Fits In

SigPDF is an electronic signature tool. It lets you draw, type, or upload your signature onto a PDF quickly and privately, with all processing happening in your browser. It does not create cryptographic digital signatures because the overwhelming majority of users do not need them.

If you need to sign a contract, form, agreement, or authorization — which accounts for roughly 95% of real-world PDF signing — SigPDF provides a legally valid signature in seconds.

The Bottom Line

Electronic signatures and digital signatures serve different purposes. Electronic signatures are about convenience and broad legal acceptance for everyday documents. Digital signatures are about cryptographic verification for high-security and regulated scenarios.

Most people, most of the time, need an electronic signature. And for that, a free, private tool like SigPDF is all you need.

Ready to sign your PDF? Try SigPDF free →

Frequently Asked Questions

Is an electronic signature the same as a digital signature?

No. An electronic signature is a broad term for any electronic indication of intent to sign a document — it includes drawn signatures, typed names, clicks, and more. A digital signature is a specific type of electronic signature that uses cryptographic technology (public key infrastructure and digital certificates) to verify the signer's identity and ensure the document has not been altered. All digital signatures are electronic signatures, but not all electronic signatures are digital signatures.

Which type of signature do I need for a business contract?

For the vast majority of business contracts — including employment agreements, NDAs, freelance contracts, vendor agreements, and purchase orders — a standard electronic signature is legally sufficient. You can create one in seconds using SigPDF. Digital signatures are only required when specific regulations or contractual clauses mandate cryptographic verification, which is uncommon in standard business dealings.

Can an electronic signature be forged or disputed?

Any type of signature, including handwritten ones, can potentially be disputed. However, electronic signatures created through signing tools carry metadata (timestamps, device information) that can support their authenticity. If you are concerned about disputes, consider keeping records of the circumstances surrounding the signing — such as email exchanges — that demonstrate intent. For highest-stakes situations where non-repudiation is critical, a digital signature with certificate verification provides the strongest protection.

Do courts accept electronic signatures as evidence?

Yes. Courts in the United States, European Union, United Kingdom, Canada, Australia, and most other jurisdictions accept electronic signatures as evidence under their respective electronic signature laws. The evidential weight may vary depending on the type of signature and the supporting documentation, but electronic signatures are broadly recognized as legally valid by courts worldwide.