What is an electronic signature? 

An electronic signature (or eSign) is a digital way to sign documents, agreements, or forms without needing to print or use a physical pen. It represents a person’s consent or approval and can be used in both personal and professional contexts. In the EU, electronic signatures are regulated by the eIDAS Regulation, which ensures their legal validity and supports compliance with frameworks such as GDPR and AML5. 

How do electronic signatures work? 

An electronic signature is any electronic data that is attached to or logically associated with other electronic data and used by a signatory to sign. It can take many forms, ranging from a scanned image of a handwritten signature to a typed name, a checkbox, or a digitally generated cryptographic signature. eSignatures can be simple, advanced, or qualified, depending on the level of security, identity verification, and legal effect required. 

Under the eIDAS Regulation, a qualified electronic signature (QES) is the eSign variety with the highest degree of assurance. It is legally equivalent to a handwritten signature and requires identity verification by a qualified trust service provider (QTSP). Businesses use electronic signatures to speed up processes, reduce paperwork, and provide customers with a seamless digital experience. They are especially valuable in remote interactions, where time, location, and convenience are critical. 

eSigning enhances compliance with GDPR by securely handling personal data, and with AML5 by verifying signatory identities during sensitive transactions. It is a core component of secure digital transformation strategies across industries including banking, insurance, real estate, healthcare, and government. 

^{Key characteristics} 

• Legally recognized under the eIDAS Regulation 
• Can be simple, advanced, or qualified depending on the level of assurance 
• Facilitates remote signing and digital workflows 
• Provides authentication, integrity, and non-repudiation 
• Supports compliance with GDPR and AML5 
• Often used with identity verification or biometric confirmation 
• Can be implemented via mobile apps, SMS OTPs, or digital certificates  

^Examples  

• A user eSigns a rental contract remotely using a Qualified Electronic Signature provided by Evrotrust 
• A customer consents to a service agreement on a financial platform using a secure electronic signature and verified ID 
• A government employee signs official documentation digitally using a certificate issued by a QTSP 
• A lawyer finalizes a client agreement with an advanced electronic signature integrated into the firm’s digital portal 
• A healthcare provider captures patient consent through a tablet-based eSign process at the point of care 

^{Related terms} 

• Qualified electronic signature (QES) 
• Trust service provider (TSP) 
• Digital identity 
• eIDAS 
• Electronic identification   

^References 

EUR-Lex – eIDAS Regulation (Regulation (EU) No 910/2014) 

European Commission – Trust Service Framework 

European Data Protection Board – Guidelines on GDPR compliance