People use "electronic signature" and "digital signature" as if they were the same thing. They are not, and the difference matters the moment a contract, a tax filing, or a government portal asks for one of them. Here is the plain-English breakdown, including which one you actually need for everyday documents.
The short version
An electronic signature is the broad legal category. It covers anything a person uses to show intent to sign: a typed name, a drawn signature image, a checkbox, even a recorded verbal agreement in some cases. A digital signature is one specific, technical way of creating an electronic signature. It uses a cryptographic certificate to lock the document, prove who signed it, and show whether anyone changed it afterward.
Every digital signature is an electronic signature. Not every electronic signature is a digital signature.
What an electronic signature is
Under the US ESIGN Act and the EU eIDAS regulation, an electronic signature is defined loosely on purpose. The law cares about intent: did the person mean to sign, and is the signature attached to the document in a way that can be shown later. A photo of your handwritten signature pasted into a PDF counts. A typed name at the bottom of an email contract can count. Courts look at the surrounding behavior, the email thread, the payment record, and the IP logs when a signature is challenged, not just the image itself.
What a digital signature is
A digital signature runs on public-key cryptography. The signer holds a private key, the signature embeds a hash of the document, and anyone with the public certificate can verify two things: the document has not been altered since signing, and the signer's identity is tied to a certificate issued by a trusted authority. Tools like Adobe Sign, DocuSign, and national e-ID systems create these. They cost money because the certificate infrastructure behind them costs money.
Which one do you need?
- Everyday contracts, invoices, offer letters, NDAs: an electronic signature, including a drawn signature image, is enough in the US, EU, UK, and most of the world.
- Regulated filings: some tax portals, court e-filing systems, and procurement platforms require a certificate-based digital signature. The clue is the portal asking for a .p12, .pfx, or a national e-ID card reader.
- Real estate deeds and wills: some jurisdictions still demand a wet ink signature or a notary, no matter what kind of electronic signature you have.
When in doubt, look at what the receiving system asks you to upload. A PNG of your signature is an electronic signature. A certificate file is a digital signature. The two solve different problems, and most people only ever need the first one.
Need a signature image? Draw or type your signature and download a transparent PNG in about two minutes.
How this maps to laws
The ESIGN Act (US) and eIDAS (EU) both start from the position that an electronic signature cannot be denied legal effect just because it is electronic. eIDAS then adds tiers: a simple electronic signature (the PNG kind), an advanced signature (uniquely linked to the signer and capable of detecting changes), and a qualified signature (certificate-based, equivalent to handwritten in court). Most business documents only need the simple tier. The advanced and qualified tiers exist for regulated industries like banking, healthcare, and government procurement.
Related guides
Are digital signatures legally binding? Free digital signature: what free covers and what it does not How to create a digital signatureFrequently asked questions
Is a PNG of my signature an electronic signature?
Yes. Placing a drawn or typed signature image on a document with intent to sign creates an electronic signature under ESIGN and eIDAS. It is the simple tier, which covers most everyday contracts.
Do I need a digital signature to sign a normal contract?
Almost never. Contracts, invoices, NDAs, and offer letters accept a simple electronic signature. Certificate-based digital signatures are needed only where a portal explicitly requires one, such as certain tax filings and court systems.
Can I create a digital signature for free?
You can create the signature image part for free. The certificate part generally costs money, because an authority has to issue and verify the certificate. If your filing asks for a .p12 or .pfx file, free options do not cover it.
Why do vendors charge for "digital signatures" if a PNG is enough?
Because they sell certificate-based workflows: identity verification, audit trails, change detection, and sending loops. Those features matter for regulated industries. For a one-off signature on a document, the image kind is enough.
Which countries accept electronic signatures?
The US (ESIGN and UETA), the EU and UK (eIDAS), Australia, Canada, and most of Asia accept simple electronic signatures for general business. Property transfers and wills are the common exceptions, and rules vary by state and country.