The terms « electronic signature » and « digital signature » are often used interchangeably – wrongly so, because despite their similarities, they refer to two very different things.

In this article you will find the definitions, the differences in how they are regulated in Quebec, in Canada and elsewhere, and advice to help you choose.

Electronic and digital signatures are the technological versions of traditional paper signatures – the handwritten signatures used for centuries to identify the signer of documents with major legal implications, such as contracts. With the digital shift, it is no surprise they keep gaining ground: the Government of Canada has regulated the use of electronic signatures since 2000, with PIPEDA, and in Quebec, the Act to establish a legal framework for information technology has given them the same legal value as handwritten signatures since 2001. These laws align with other legislation around the globe (more details below).

What is an electronic signature?

In Canada, section 31(1) of the Personal Information Protection and Electronic Documents Act (PIPEDA) establishes the electronic equivalents of printed documents and paper signatures. It defines an electronic signature as follows:

« A signature that consists of one or more letters, characters, numbers or other symbols in digital form incorporated in, attached to or associated with an electronic document. »
– PIPEDA

A few concrete examples covered by the law:

• using a stylus on a screen to capture a handwritten signature electronically;
• typing a name at the end of an email or in a dedicated name field;
• clicking a confirmation button to capture intent;
• logging in with a username and password to complete a given action;
• scanning a handwritten signature from a paper document.

PIPEDA also makes special provisions for « secure electronic signatures », which rely on asymmetric cryptography. These reinforced signatures are required in particular for documents used as evidence or proof, seals, original documents, statements made under oath, statements declaring truth and witnessed signatures.

In Quebec, the Act to establish a legal framework for information technology (sections 38 and 39) confirms that an electronic signature has the same evidentiary weight as a paper one, provided the signer’s identity and their link to the document can be established. Commercial contracts, HR documents, leases and everyday approvals can therefore be signed electronically with full validity. The real question is not « is it legal? » but « how do you prove who signed, when, and that the document has not been altered since? ».

E-signature laws around the world

Jurisdictions around the world agree on the characteristics of a reliable electronic signature:

When these conditions are met, an electronic signature will most likely be legally binding, whatever the jurisdiction.

In the United States

Two main laws apply: the Uniform Electronic Transactions Act (UETA), introduced by the Uniform Law Commission in 1999 and adopted by most states, and the federal Electronic Signatures in Global and National Commerce Act (ESIGN, 2000), designed to facilitate nationwide adoption. Under these laws, electronic signatures can be used for virtually any business transaction – in person or online, as long as all parties agree – and the electronic format is not valid grounds to challenge a signature’s validity or enforceability. The U.S. definition is also broader than Canada’s: the ESIGN Act covers any « sound, symbol or process », including a recorded voice response, for example.

In Europe

The eIDAS regulation distinguishes three levels of electronic signature (simple, advanced, qualified) based on the degree of authentication and certification. It often serves as the international reference for comparing assurance levels.

What is a digital signature?

The concept of a digital signature is technical, not legal. Under applicable law, digital signatures are a type of electronic signature that meets specific criteria to deliver the highest level of security and trust – which is why they are the most widely accepted.

Like a fingerprint, a digital signature is unique to each signer and each document. In North America, it generally follows a protocol called Public Key Infrastructure (PKI): the technology generates two keys, one public and one private, tied to their owner through a digital certificate – a kind of passport for the digital ecosystem. These certificates are issued by certificate authorities (CAs), trusted third parties responsible for keeping the keys secure.

E-signature software that uses PKI effectively identifies the signer, encrypts the data and applies a unique timestamp when the document is signed. If the document is modified afterwards, the digital signature is automatically invalidated. In other words: a digital signature does not express consent by itself – it secures and authenticates it.

In Canada, the Secure Electronic Signature Regulations actually use the term « digital signature » in their definition of secure electronic signatures. The two notions are essentially equivalent, since both rely on asymmetric cryptography and PKI to manage private keys and certificates.

The 3 levels of electronic signature

The European eIDAS regulation popularized a three-level classification that has become the worldwide reference for assessing how robust a signature is. Here is what each level means – and its equivalent in Canadian practice.

Canada has no formal equivalent of the qualified signature: PIPEDA’s « secure electronic signature » (asymmetric cryptography) plays the role of the top level for sensitive documents.

What are the differences between digital signatures and electronic signatures?

Subject to any local legislation to the contrary, an electronic signature is one or more letters, characters, numbers or other symbols in digital form incorporated in, attached to or associated with an electronic document, for the purpose of signing it. Digital signatures are a subset of electronic signatures that meet specific criteria: when someone says « digital signature », they mean a particular type of electronic signature offering extra security. In Canada, this is also called a secure electronic signature.

Keep in mind: a scanned signature is technically a valid electronic signature, but it is the weakest form – no authentication, no protection against changes, and little evidentiary weight if challenged.

Which type of signature for which document?

In practice, here are the recommended levels for the documents you sign most often:

When in doubt about a high-stakes document, check with your legal advisor – then choose a platform that provides a complete evidence file.

Note: since 2020, Quebec notaries may execute certain notarial acts in technological form; the notarial route nonetheless remains subject to its own formalities.

Electronic or digital signature: which one do you need?

In practice, you do not have to choose: the best platforms combine both. An electronic signature solution like eZsign produces electronic signatures backed by digital certificates – every signed field is sealed, every action is recorded in a time-stamped evidence file, and signers can be authenticated by SMS or email code. All data is hosted in Canada, a direct asset for compliance with Quebec’s Law 25.

Quebec organizations across every sector already rely on it: manufacturer Cuisi-n-art for its design approvals, Groupe Jetté Assurances – which cut its signing costs by 70% – and service teams securing their remote transactions.

Electronic signatures are easier to use than ever thanks to powerful cloud-based e-signature software. If you need advice on using them in Canada or an e-signature application for your business, our team at eZsign will be happy to help: get in touch today and speak to an e-signature expert about your needs. Try the solution free to get started – we also offer an integrated payment solution to collect deposits, advances or full invoice payments. You will be pleasantly surprised by eZsign’s affordable pricing.

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