What Is an Electronic Signature? Meaning, Types & Legal Validity

Electronic signatures have changed the way people sign agreements and handle documents. They let individuals and organizations approve contracts or forms online, removing the need to print, mail, or fax paper copies. Most people do not understand the differences between electronic signatures (also called e-signatures) and the different types of e-signatures or how to know if you have an electronic signature.

This blog will explain the differences between e-signatures and digital signatures (an e-signature is a type of digital signature) and discuss the growing use and acceptance of e-signatures as a legal way to validate documents worldwide.

Definition: What Is an Electronic Signature?

Electronic signature meaning

An electronic signature (e-signature) is any electronic process linked to a document that someone uses to show they intend to sign it.

The U.S. ESIGN Act (15 U.S.C. § 7006) defines an electronic signature as:

“an electronic sound, symbol, or process attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record”. 

In practice, e-signatures can be as simple as typing your name, checking a box, using a stylus on a tablet, or clicking a “Sign” button.

Since intent is what matters most, the technology used for an electronic signature can differ. For example, if you create a signature in a word processor and email it, it counts as an electronic signature if you mean to be bound by it. However, not all e-signatures are equally secure or reliable as evidence, so laws group them by how much assurance they provide.

Digital signature vs. electronic signature

An electronic signature is any electronic method used to show acceptance. A digital signature is a special kind of e-signature that uses cryptography, like public-key infrastructure (PKI) and certificates, to confirm the signer’s identity and spot any changes to the document. Digital signatures secure the document with a unique code, and the signer’s certificate links the signature to their identity. If the document is changed, the signature becomes invalid, which builds trust and makes it more legally reliable.

In other words, all digital signatures are electronic signatures, but not all electronic signatures are digital signatures. A typed name or click-through acceptance lacks cryptographic backing and is considered a simple electronic signature. Digital signatures provide a higher assurance level because they rely on PKI, digital certificates and often require the signer to prove their identity through multi-factor authentication or a trusted certificate authority.

Types of Electronic Signatures

Different countries group e-signatures by how much assurance they provide. While the terms may differ, most systems recognize three main types:

1. Simple Electronic Signature (SES): Also called a basic or ordinary e-signature. This can be a typed name, a scanned handwritten signature, or a check box to indicate consent. It provides the lowest level of assurance because it may be difficult to prove who actually signed. SES is suitable for low-risk agreements, such as internal approvals or consumer forms.
2. Advanced Electronic Signature (AES): AES requires a higher level of identification and provides tamper evidence. The signer must be uniquely linked to the signature, and any change to the document after signing invalidates the signature. AES commonly uses cryptographic keys to establish authenticity but may not require a certificate issued by a qualified trust service provider (QTSP). Under the EU’s eIDAS regulation, an advanced signature must be uniquely linked to the signatory, capable of identifying them, created using data under the signer’s sole control, and linked to the document so that any subsequent changes are detectable.
3. Qualified Electronic Signature (QES): This is the most secure and legally robust form of e-signature, recognized in the European Union and some other jurisdictions. A QES is an advanced signature created with a qualified certificate issued by a QTSP and created using a qualified signature creation device (QSCD). Under eIDAS, a QES has the same legal effect as a handwritten signature. Achieving this level often requires in-person or remote identity verification. Because it carries strict requirements, QES is used in high-risk transactions such as notarizations, cross-border business agreements, and certain government filings.

These types are often shown as a “signature assurance ladder,” with each step offering more technical complexity and stronger evidence of signing. Businesses should pick the level that fits the risk of their transaction and the rules they must follow.

Adoption and Market Trends

Market size and growth

According to Fortune Business Insights, valued at USD 7.13 billion in 2024 and projected to grow from USD 9.85 billion in 2025 to USD 104.49 billion by 2032, reflecting a CAGR of roughly 40.1 %.

Grand View Research’s 2025 report (referenced in industry overviews) estimates the digital signature market size at USD 5.2 billion in 2024 and projects it to reach USD 38.16 billion by 2030, implying a CAGR around 40.5 %. While absolute figures vary due to different methodologies, all three sources point to explosive growth exceeding 30 % annually.

These growth numbers show that electronic signatures are not just a short-term solution to the pandemic. They are becoming a key part of how businesses operate.

Market dynamics and drivers

Several factors drive the rapid growth of the electronic signature market:

• Shift to digital workflows: The pandemic accelerated digital transformation. As remote work and electronic documents became the norm, organizations moved away from paper and manual signatures to maintain continuity.
• Regulatory support: Laws like the ESIGN Act, UETA and eIDAS provide explicit legal recognition of e-signatures, giving businesses confidence to adopt them (details below).
• Need for efficiency: Companies aim to reduce cycle times, improve customer experience and lower costs. E-signatures eliminate printing, shipping and scanning, enabling faster contract execution and approvals.
• Security and compliance: Digital signatures and advanced e-signature technologies provide tamper-evidence and improved identity verification, which are critical for regulated sectors like finance, healthcare and government.
• Embedding and automation: Modern platforms integrate e-signature capabilities into core business systems via APIs. This integration reduces context switching, streamlines workflows, and ensures auditability.

These factors suggest that more organizations will keep adopting e-signatures. For instance, Precedence Research reports that cloud-based solutions made up 56% of revenue in 2024, showing a shift toward scalable, SaaS e-signature tools. However, on-premise solutions still account for 44%, especially in industries with strict security or regulatory needs.

Legal Validity: Key Frameworks and Requirements

United States (ESIGN and UETA)

The U.S. legal framework is anchored in two major statutes: the Electronic Signatures in Global and National Commerce Act (ESIGN Act) of 2000 and the Uniform Electronic Transactions Act (UETA).

• ESIGN Act: The ESIGN Act provides that a signature, contract, or other record cannot be denied legal effect solely because it is in electronic form. Its definition of an electronic signature emphasizes that any electronic sound, symbol, or process executed with the intent to sign qualifies. It also requires that parties consent to do business electronically and that consumers receive specific disclosures about their rights and any hardware or software requirements.
• UETA: UETA is a model state law that most states have adopted, making electronic records and signatures legally valid and enforceable. It clarifies that electronic signatures meet the definition of a signature if the signer intends to sign, and that records cannot be rejected simply because they are electronic. New York and a few other states have their own statutes, but provide similar protections

Together, ESIGN and UETA ensure that electronic signatures are as enforceable as handwritten signatures in most U.S. transactions. They also mandate record retention: electronic records must remain accessible for later reference and must accurately reflect the information in the original record.

European Union (eIDAS Regulation)

The EU’s Regulation (EU) No 910/2014 on electronic identification and trust services (eIDAS) defines three categories of electronic signatures (simple, advanced, and qualified) and establishes trust services to manage them. Under eIDAS, a qualified electronic signature (QES) has the same legal effect as a handwritten signature across all member states. 

Notably, the regulation includes a “non-discrimination” principle, meaning that simple and advanced electronic signatures cannot be denied legal effect solely because they are electronic or not qualified. However, organizations often choose advanced or qualified signatures for higher-risk transactions because courts generally view them as stronger evidence.

Best Practices for Choosing and Implementing E-Signature Solutions

When choosing an e-signature solution, make sure it matches your organization’s risk level, compliance needs, and user experience goals. Here are some best practices:

1. Assess transaction risk: Determine the level of assurance needed. Low-risk agreements (e.g., internal HR forms) may only require simple e-signatures, whereas high-risk contracts (e.g., financial services, real estate transactions) might necessitate digital or qualified signatures.
2. Check legal requirements: Understand the regulations governing your industry and region. For instance, some sectors require witnesses, notarization, or specific certificate authorities. Always ensure that the solution complies with ESIGN, UETA, eIDAS, or local laws as applicable.
3. User experience matters: Choose a solution that integrates seamlessly with existing workflows. Embedded signing within your CRM, ERP, or HR systems reduces context switching and improves adoption. Solutions that support mobile devices, multiple languages, and accessibility will enhance user satisfaction.
4. Security and authentication: Ensure the platform provides robust identity verification (multi-factor authentication, biometrics, government-issued ID checks), document encryption, tamper-evident seals, and comprehensive audit trails. Look for certifications such as ISO 27001, SOC 2 or industry-specific standards.
5. Data sovereignty and storage: Consider where signatures and documents will be stored. Cloud-based platforms are convenient but may raise data-residency concerns. Some organizations opt for on-premise deployments or hybrid models. Precedence Research found that on-premise deployments still account for about 44 % of revenue, showing demand for local control.
6. Vendor reliability and support: Evaluate the provider’s reputation, financial stability, and customer support. Leading vendors like Wesignature offer solutions certified for multiple jurisdictions.
7. Record retention and evidence: Ensure that signed records are stored securely for the legally required duration, are accessible for audits, and can be reproduced in court. Many regulations, including ESIGN and UETA, require that electronic records remain accurate and accessible.
8. Training and change management: Adoption is not just about technology; it involves people and processes. Provide training on the new system, update your document templates, and communicate the legal validity and benefits of e-signatures to reduce resistance.

By following these tips, organizations can get the most out of e-signatures, stay compliant, and reduce risk.

Key Takeaways and Future Outlook

The rise of electronic signatures is part of a larger shift toward digital processes. Recent research and statistics highlight a few key points:

• E-signatures are mainstream: Approximately 60–80% of organizations use them, and adoption continues to grow. Enterprises are moving away from standalone signing portals toward embedded signing experiences integrated into business applications.
• Rapid market expansion: Forecasts predict that the global digital signature market will grow from about USD 9.85 billion in 2025 to over USD 100 billion by 2032 and could exceed USD 238 billion by 2034. CAGR estimates of 39–40% highlight the sector’s dynamism.
• Security and productivity drive adoption: Surveys show that the primary benefits cited by adopters are increased security, improved productivity, and faster business cycles. Concerns about customer acceptance, security and legal validity persist among non-adopters, but evidence suggests these barriers are diminishing as regulations mature.
• Differentiating e-signatures and digital signatures: Digital signatures are a subset of electronic signatures that use cryptography and certificates to provide higher assurance. Understanding this distinction helps organizations select appropriate solutions for different risk levels.

In the future, the main challenge will move from getting organizations to use e-signatures to helping them make signing a routine part of their operations. New trends like using AI and machine learning for document handling, identity checks, and fraud prevention, plus the introduction of national digital identity wallets, will make digital signing easier and safer. As e-signatures become built into business systems, they will blend into everyday digital workflows and become a vital but invisible part of every transaction.

Conclusion

Electronic signatures let people and organizations sign documents online, saving time and resources while keeping transactions secure and legal. A simple e-signature could be typing a name or checking a box, while a digital signature uses cryptography and certificates for extra security.

In places like the EU, qualified electronic signatures are legally equal to handwritten ones. Reports indicate explosive growth: valuations around USD 9 billion in 2025 are expected to exceed USD 100 billion by 2032 and could surpass USD 238 billion by 2034. 

Adoption has become mainstream, with around 60–80 % of organizations using e-signatures. The key drivers include efficiency, security, regulatory clarity, and the shift toward integrated digital workflows.

As digital identity systems improve and e-signature technology becomes more common, electronic signatures will continue to support business, government, and daily transactions.