Electronic signatures are considered to be as legally binding as traditional paper-and-ink signatures. The term “signature” generally refers to a unique, stylized script belonging to a particular person. E-signatures are not simply an image of a wet-ink signature, but rather their electronic equivalent. They indicate that a person, or signatory, accepts the contents of a document.
E-signatures can be used for a variety of documents and purposes. They can be used within an office for approval purposes in issues such as requesting time off, formal documents, and other requests. They can also be used while opening an account with a bank or any other establishment. The role of e-signatures is very important to the critical infrastructure and processes of a company’s workflow. Many countries have enacted laws governing the use of electronic signatures that protect users.
In layman’s terms, an electronic signature acts as a seal. It can refer to anything that shows identity and intent to sign. With the passage of the ESIGN Act and UETA, electronic signatures are legally binding in the United States. They have helped businesses around the world a great deal, increasing their efficiency and productivity. Electronic signature providers encrypt documents to ensure their authenticity. The security of the person signing the contract is the primary concern of e-signature providers. Electronic signatures are more secure than traditional signed paper contracts as they can never be lost or tampered with.
E-Signatures are based on various electronic processes ensuring the authenticity of any electronic document. They eliminate paper, printing and mailing costs. One major advantage of e-signatures is that they are accessible anytime from any computer. The process of signing documents with an e-signature is also very simple and easy for anyone with minimal computer experience.
The various business sectors that have benefited most from the legalization of electronic signature are those in financial services, technology, and consumer services. The passing of laws has also enabled various B2Bs, whose business processes require legally binding agreements when it comes to the supply of products and services, to utilize them. E-commerce has seen tremendous growth and has benefited from the implementation and legalization of electronic signatures.
April 11, 2011 at 6:36 pm
I think e-signature are because of e-commerce. Coming age is age of advance e-commerce and the value of e-signature will be increased.
June 30, 2011 at 10:47 pm
@ Khan, I don’t think it is as much a factor of e-commerce coming of age as it is of the internet as a whole advancing. eSign Act compliant providers like GoPaperless http://www.gopaperless.com/ and RightSignature provide a Certificate of Authenticity for completed signing sessions among other factors this makes your signature legally binding and secure. This along with government approval has made more industries like financial services, technology, and consumer services feel more comfortable using e-signatures.
April 11, 2011 at 8:12 pm
Yes, Mr. Khan, its beneficial for e-commerce as is evident from the growth of e-commerce. Even the traditional businesses can reap benefits of e-signature technology for faster transactions, no need to travel places just for signing documents. It saves time and money and one of the most innovative technology developments to help businesses grow.
April 12, 2011 at 2:39 pm
The world is really developing in a super fast way. Today its e-signature tomorrow we never know what new inventions will be on the way. E signature is going to be one of the most remarkable development in history, truly innovative and I completely agree, it saves both time and money. We’re really going to experience new levels of development. E-signature is truly a boon specially for the growth of e-commerce. Well written Kevin, it was a pleasure reading such an important post.
April 14, 2011 at 4:39 pm
Twill be really interesting to see how this pans out in the future.
April 14, 2011 at 5:40 pm
Thanks admin for publishing this post.
April 14, 2011 at 5:49 pm
You ‘re welcome Kevin. Great article – it’s always great to see guest contributors replying to comments on their published content.
April 14, 2011 at 5:19 pm
Thanks Karen. Yes, a growing number of individuals and companies are integrating e-signature and other technology tools in their business processes and benefiting from them.
April 13, 2011 at 9:24 pm
E-signature is become popular day by day in online transaction, i think it will be very useful for online banking and ec0mmerce transaction.
April 14, 2011 at 5:22 pm
Yes, Luqman, electronic signature technology is growing in popularity due to its numerous advantages.
April 21, 2011 at 10:33 pm
As the dependency on technology increases, electronic signing becomes more and more necessary. Before it would be by using a pin, the last 4 numbers of your social security, or even your initials. However to prevent fraud, electronic signature technology has become more advanced.
May 19, 2011 at 1:49 pm
You have explained the theory of electronic signatures so nicely and i think electronic signatures are admirable as one can use them for many official purposes.
June 8, 2011 at 11:36 am
To reduce cost and time and empowers businesses that Documents can be signed in just minutes. creating, sending, tracking documents are eliminated by Electronic Signature Solution.
July 29, 2012 at 2:20 pm
Digital signature software setting new height to security. Many departments use this software to secure documents. This blog provide very useful information about how to use digital signature software.
Thank for sharing useful information.
electronic signature software
February 1, 2013 at 1:34 pm
Electronic signatures are much more effective, secure and cheap in terms of cost. They are economical as compared to paper based signing. You can sign one document even though your business partners are sitting at different parts of world. This save, time, cost and its completely secure and legal too.