An electronic signature for every occasion?

Maybe you signed an insurance policy using a digital pen on a signature pad. Or used your finger on a delivery person’s phone when a package required proof of delivery. Or maybe you clicked through a stack of PDFs your bank sent you when opening a new checking account.

But why do banks, insurance companies, postal services, and telecom providers use electronic signatures?

Because e-signing is a secure, efficient, and legally valid way to sign documents - whether at a point of sale or remotely.

Security and legal compliance

E-signing providers must comply with strict legal frameworks defined by both domestic and international regulations.

Within the European Union, all providers must comply with the eIDAS Regulation (electronic Identification, Authentication, and Trust Services).

Those that meet all requirements are included in the official EU Trusted List of Qualified Trust Service Providers.

In the United Kingdom, despite leaving the EU, the eIDAS framework has been retained and adapted as UK eIDAS, alongside the Electronic Communications Act .

In the United States, e-signatures are governed by two key laws: the Electronic Signatures in Global and National Commerce Act (ESIGN Act) and the Uniform Electronic Transactions Act (UETA).

Canada regulates electronic signing through the Personal Information Protection and Electronic Documents Act (PIPEDA) and the Uniform Electronic Commerce Act (UECA).

In Serbia, e-signatures are covered by the Law on Electronic Documents, Electronic Identification, and Trust Services in Electronic Commerce .

Not all electronic signatures are created equal

The eIDAS Regulation defines three types of electronic signatures:

Simple Electronic Signature (SES) — The most basic type, requiring no identity verification (for example, typing your name at the end of an email). It uses simple tools and offers limited security.

Advanced Electronic Signature (AES) — Created using signature data that only the signer can access and control with a high level of confidence. It allows clear identification of the signer and detects any alterations to the document.

Qualified Electronic Signature (QES) — Essentially an enhanced advanced signature that combines a qualified digital certificate with a secure signature creation device (such as a smart card, SIM card, USB token, or remote signing solution in the cloud).

A QES has the same legal effect as a handwritten signature across the EU.

The UK follows a similar classification, while the U.S. does not distinguish between signature levels.

In the U.S., an electronic signature is defined 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.”

For an e-signature to be legally valid, it must meet the following criteria:

• Intent to sign: The signer must clearly intend to sign.
• Consent to do business electronically: Particularly in consumer transactions, explicit consent must be obtained.
• Association with the record: The signature must be logically linked to the document.
• Record retention: The record must be stored accurately and remain accessible for future reference.

Although ESIGN and UETA don’t define terms such as “advanced” or “qualified,” they encourage technologies that enhance trust—such as two-factor authentication, digital certificates, and audit trails.

Canadian law also doesn’t distinguish between signature levels. Under the UECA, a standard electronic signature is defined as: “Electronic information that a person creates or adopts to sign a document, which is then in, attached to, or associated with the document.”

Serbia’s legislation mirrors the EU’s eIDAS model, recognizing simple, advanced, and qualified electronic signatures.

Which signature type fits which document?

In Canada, a simple e-signature can be used for most documents, except for wills, certain powers of attorney, family law documents (such as divorce and adoption), and official court filings — all of which still require a handwritten signature.

In the United States, an electronic signature cannot be denied legal effect or enforceability simply because it is in electronic form.

For most agreements — again excluding wills, powers of attorney, family law, and specific court documents — an e-signature holds the same legal value as a handwritten one.

However, parties must demonstrate a clear intent to sign and be informed about:

• their right to access the document in a non-electronic form,
• the right to withdraw consent (and the consequences of doing so),
• and the hardware or software requirements needed to view or retain a copy of the signed document.

The eIDAS Regulation in the EU (and UK) sets more specific criteria for the use of each signature type:

• Simple Electronic Signature is suitable for low-risk documentation such as internal agreements, consent forms, non-disclosure agreements, and basic HR forms.
• Advanced Electronic Signature provides stronger identity verification and greater legal assurance, making it suitable for medium-risk transactions such as business contracts, loan agreements, insurance policies, HR records, or logistics documentation.
• Qualified Electronic Signature combines identity verification with a digital certificate, providing the highest level of legal assurance. It’s recognized across all EU member states as equivalent to a handwritten signature and is recommended for high-risk or regulated sectors such as finance and healthcare.

What about the user experience?

More complex security mechanisms naturally require more steps for the user.

For a qualified signature, you’ll need to verify your identity with a local or cloud-based digital certificate, which may require some technical know-how.

A simple e-signature, on the other hand, can be completed in seconds — just click the link and sign.

The advanced e-signature strikes the perfect balance: offering stronger security and legal weight while keeping the signing experience smooth and user-friendly.

As Article 25(1) of eIDAS states: “An electronic signature shall not be denied legal effect and admissibility as evidence in legal proceedings solely on the grounds that it is in an electronic form or that it does not meet the requirements for qualified electronic signatures.”

Conclusion

Now that you understand the different types of electronic signatures — and how they’re regulated globally — you can choose the right one for each situation.

And if you’d like to experience how easy and secure e-signing can be, you can try BetrSign® free  for 30 days.

Have more questions or want a personal demo? Book a demo with one of our experts today.