In the past year or so, there’s been a big push for organizations to speed up their digital transformation and digitalization to adapt to the new normal, and to ensure business continuity amid government restrictions in place. One of the challenges organizations face during this pandemic is routing of documents for signatures. Signing of documents such as agreements, contracts, purchase requisitions, purchase orders, invoices and so on can be quite a challenge, especially if multiple approvals and signatures are needed. Despite the technology to address this challenge being available, many organizations remain stuck with the traditional way of signing documents up until now – using handwritten signature on a paper.  

It’s time to say goodbye to paper signatures and embrace digital signing. Digital signing provides a way to sign electronic documents easily and quickly, anytime, anywhere. But before embarking on that journey, it is important to understand the difference between electronic signatures and digital signatures.  

An electronic signature or e-signature is an electronic equivalent of the handwritten signature on a paper. An electronic signature can be affixed to a document by uploading an image of the handwritten signature, typing a name or drawing a signature on a computer or a mobile device. On the other hand, a digital signature makes use of a digital certificate, which gives one the ability to verify the identity of the signer, to confirm if the document has been altered since the time of signing, and provides non-repudiation – one cannot deny signing the document.

Now the question is, are e-signatures and digital signatures legally valid in the Philippines? Yes, they are legally binding since Republic Act No. 8792 or the Electronic Commerce Act of 2000 has been enacted. But it is important to note that e-signatures are only recognized by law if they conform to the criteria specified in the Electronic Commerce Act. While digital signatures comply fully with the criteria set out in the said act. Below is an excerpt from the act.

“Section 8. Legal Recognition of Electronic Signatures. – An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if that signature is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed…”

Digital signatures offer far more security than paper signatures. Paper signatures can be forged. Documents with paper signatures can be altered and the alterations may be undetectable. Without proper security in place, e-signatures are also at risk of forgery and undetectable alterations. Compared to paper signatures and e-signatures, digital signatures are the most reliable when it comes to providing document integrity and assuring signer’s identity. However, for now, documents that need to be notarized are required to be affixed with a handwritten signature.

In a nutshell, with digital signatures, documents can be easily signed in the comfort of one’s home, or even anywhere in the world. Digital signatures offer high security, and digitally signed documents are legally binding.

Information about our document signing solution can be found here.