FlowCentric Official Blog

Digital vs Electronic Signatures — Which Does Your Business Need?

Written by Heather McDade | 23-Jun-2025 10:24:48

“It’s just a signature,” they said — right before the contract vanished into a compliance black hole, or a procurement deal stalled for weeks over missing initials. Because no matter how strategic the deal, it isn’t done until the admin is.

The reality is that not all signatures are equal. In fact, not all signatures that look digital actually are. And that distinction matters, especially when your business spans multiple departments, provinces, countries, or regulatory obligations.

So, what’s the difference between a digital signature and an electronic one? And, critically, how do you know which your business needs?

Let’s keep it simple.

Electronic vs Digital Signatures: What’s the Difference?

The terms are often used interchangeably — but they’re not the same thing.

  • Electronic signatures are any mark, symbol, or action made electronically to show intent to sign. This could be ticking a box, typing your name, pasting a scanned image of your signature, or using a stylus on a tablet. If it’s made electronically and shows intent, it counts as an electronic signature.
  • Digital signatures are a specific type of electronic signature that use encryption and digital certificates to verify identity, timestamp the action, and secure the document’s integrity. They’re based on a recognised standard (often PKI – public key infrastructure), which makes them far more robust from a legal, compliance, and audit perspective.

Or, put another way: All digital signatures are electronic. But not all electronic signatures are digital.

When to Use What: Practical Examples

Scenario Best Fit
Internal HR approvals Electronic signature
Supplier onboarding documents Digital signature
Timesheet sign-offs Electronic signature
Sales contracts or service agreements Digital signature
Leave requests Electronic signature
NDAs and compliance declarations Digital signature

The greater the risk or compliance requirement, the more robust your signature process needs to be.

 

Key Differences at a Glance

Feature Electronic Signature Digital Signature
Legal recognition Valid with intent Valid, with stronger proof
Security Basic to moderate Strong (encryption, tamper-evident)
Identity verification Often minimal Certificate-based, high trust
Audit trail May be added manually Built-in and standardised
Cost Low to moderate Moderate to high (value-driven)
Ease of use Very user-friendly Slightly more complex to implement

 

How to Decide: A Simple Checklist

Ask yourself:

  • Would it be a problem if this document were tampered with?
  • Do we need to know who signed and when — with proof?
  • Is this document governed by regulations (e.g. POPIA, FICA, GDPR)?
  • Will this document be audited?
  • Are we sending this outside the company (e.g. to a client, supplier, regulator)?

If you’ve answered “yes” to any of those, you’re likely in digital signature territory.

Flexibility Meets Security: Why FlowCentric Uses RealSign

Different documents carry different risks — which is why using a “one-size-fits-all” approach is risky. That’s why FlowCentric offers RealSign, a signature solution that supports both electronic and digital signatures.

Better yet, RealSign integrates directly into the workflows built with FlowCentric Processware, meaning your approvals and documents are signed, tracked, stored, and audited in one seamless process.

So, whether you’re processing HR forms, issuing contracts, or managing compliance documentation — the right level of signature strength is already built into your system.

Final Thought

You don’t need to digitise everything all at once — but you do need to start with the right tools for the job.

FlowCentric can help you assess where digital and electronic signatures fit best in your business. We’ll help you choose where the added security is worth it, and where simplicity works just fine.

Need clarity on where digital signatures add the most value? FlowCentric can help you map the right approach across your documentation.