Paperless signing: Discovering the advantages of digital signatures.

IDnow ebook reveals how the latest digital signature solutions can help unlock valuable business opportunities.

From symbols and pictographs, to ink and pen, signatures have been around for thousands of years, dating all the way back to 3000 B.C. Interestingly, the idea of digital signatures can be traced to the Wild West era when businesses used the dotted communications of Morse code and telegrams to sign contracts.

Fast forward to the 20th century, when in 1976 the first concept of a digital signature was introduced by cryptographers, Whitfield Diffie and Martin Hellman. Today, compliant and fully digital signatures are integral to everyday business operations, securely facilitating contract signings worldwide, instantly accessible from any location, at any time.

As the world shifts from physical to electronic, digital signatures will be essential in ensuring trust and authenticity in transactions. Digital signatures can streamline the process of signing contracts and enhance a company’s ability to verify, comply and protect digital identities, fortifying the trust needed to thrive in an increasingly digital world.

Click below to check out our latest ebook, ‘Expert guide to digital signatures.’

Expert guide to digital signatures.

What are digital signatures and the history behind them? Download to discover:
  • grey square with four lines and checkThe different types of digital signatures
  • sign logo with check in itBenefits of implementing a digital signature solution
  • smartphone logo with two arrows insideHow IDnow can help unlock valuable business opportunities
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Expert guide to digital signatures

Navigating the different types of digital signatures.

Much like a traditional wet ink signature, a digital signature serves as legal evidence when concluding a transaction. However, the advantages of digital signatures extend far beyond their physical counterparts. They are faster, entirely digital, and can be signed remotely from anywhere at any time, eliminating the need for signers to visit a physical location or branch.

This convenience not only streamlines the process but also enhances efficiency, making it easier and quicker to finalize important documents without the logistical challenges associated with physical signatures. Different types of digital signatures include:

  • Simple Electronic Signatures (SES), which can be as straightforward as typing a name or clicking an “I agree” button. They are versatile and accessible, making them ideal for everyday transactions. However, unlike Advanced Electronic Signatures and Qualified Electronic Signatures, an SES lacks strong authentication and data integrity measures. It is best suited for low-risk, informal agreements and may not be appropriate for high-value or legally sensitive transactions.
  • Advanced Electronic Signatures (AES) uniquely identify and link the signer to the signature, ensuring it can be attributed to them. They meet legal requirements for court admissibility and comply with regulations like the EU’s eIDAS. While not as robust as a QES, an AES still offers significant legal weight and is recognized as a secure and reliable electronic signature in many jurisdictions.
  • Qualified Electronic Signatures (QES) are highly secure digital signatures backed by a qualified certificate from a trusted Certificate Authority. This certificate meets stringent regulatory standards and links the signature to the signer’s verified identity, ensuring the highest level of legal recognition and security.

Embracing digital signatures.

The use of digital signatures has risen by 50% since the COVID pandemic, according to airSlate, with 69% of respondents continuing to use digital signatures due to their increased convenience and security.

This digital signing boom shows no signs of slowing, as the global digital economy continues to expand, with people increasingly living, working and transacting across borders, industries and use cases in this remote, digital landscape. Digital signatures, which combine remote, 24/7 convenience without compromising on security, are purpose-built for the digital world.

The increasing importance of digital signatures was put into the spotlight in July 2016, when the European Union (EU) issued the eIDAS regulation (electronic Identification, Authentication, and Trust Services), which increased the significance of electronic signatures drastically. Digital signatures are therefore widely used in the EU for various purposes, primarily to ensure the authenticity, integrity and non-repudiation of electronic documents and transactions.

For example, digital signatures are necessary and extremely important in the following situations:

  • Legal contracts and agreements: Digital signatures are used to sign legally binding contracts and agreements, including sales contracts, employment agreements and service contracts. They provide assurance that the signer has accepted the terms of the document.
  • Financial transactions: In the EU, digital signatures play a crucial role in financial transactions, including online banking, electronic fund transfers and digital payments. They help verify the identity of the parties involved and ensure the security of the transaction.
  • Regulatory compliance: Digital signatures are often required to comply with various EU regulations and directives, such as the eIDAS regulation which establishes a legal framework for electronic signatures, seals and time stamps.

The importance of the eIDAS Regulation.

The eIDAS Regulation (EU No 910/2014) stands as a cornerstone in Europe’s digital landscape, harmonizing rules for electronic identification and trust services across the European Single Market. It sets stringent standards for electronic signatures, notably QES, ensuring they carry equivalent legal weight to traditional handwritten signatures.

Crucially, eIDAS mandates mutual recognition of electronic identification methods between Member States, facilitating seamless cross-border transactions. This regulatory framework not only enhances security and trust in electronic communications but also promotes the digital economy’s growth by enabling secure and legally binding electronic transactions throughout the EU. This includes when an individual wants to sign a document with a QES and needs to be identified and verified for security purposes such as the following:

  • Identity verification: The identity of individuals must be verified before issuing a qualified certificate for electronic signatures. This can be done using automated methods but must meet high security and reliability standards. By putting these applications together, this guarantees that a high level of security and reliability is met when undergoing all types of document signing.
  • Remote identification: Automated processes for remote identity verification are permissible under eIDAS, but they must ensure the same level of assurance as physical presence verification. Techniques may include video identification, use of eID cards or other secure methods depending on the specific EU country and industry.

Unlocking the benefits of digital signatures – from security to sustainability.

From removing the friction and cost associated with manual processes, to preventing fraud and fueling growth, implementing digital signatures deliver a myriad of benefits, enabling businesses to:

Why sign with IDnow?

At IDnow, we provide comprehensive signing solutions tailored to meet the diverse needs of any business operating in today’s global digital economy. Whether you need fully automated, video, eID, or in-person, IDnow delivers a versatile, secure and enhanced user experience, ensuring that your customers sign on the dotted line, every time.

This even includes our newest signing solution InstantSign which issues a QES using any previous AML-compliant identity verification in seconds.

If reverification is needed due to an expired user’s identity document, then InstantSign works seamlessly with IDnow’s full range of identity verification solutions, keeping ident data up-to-date, and providing the perfect, compliant solution for financial services organizations.

Any ident, from any vendor, anytime—truly one of a kind.

By

Kristen Walter head shot

Kristen Walter
Jr. Content Marketing Manager
Connect with Kristen on LinkedIn

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