The way we do business in digital era is changing. One big change is how we sign important papers. Instead of using a pen, many people are now using eSignatures. But there’s still a lot of confusion around them. Are they really safe? Can they be trusted? Are they even legal?
Let’s bust some myths and show you why eSignatures are the future.
Myth 1: eSignatures Are Not Legally Binding
Some mistakenly believe that an electronic signature does not have as much power as a traditional ink signature. This simply is not the case. Countries such as the U.S., under the E-SIGN Act, and most others worldwide recognize eSignatures as a legal form of signature. In fact, 60 countries have enacted varying sets of laws to legally provide electronic signatures the same status as handmade ones. MarketsandMarkets, in a recent report, places the global eSignature market at USD 7.4 billion in 2023, expecting it to grow to USD 34.8 billion by 2028. This growth represents increasing trust and legal recognition.
Myth 2: eSignatures Are Not Secure
People often worry that eSignatures are not safe and can be easily changed. Actually, eSignatures use strong security methods called “encryption” to protect documents. This makes them often more secure than paper documents. According to a study, 82% of companies reported improved security with eSignatures. Additionally, eSignatures come with “audit trails” that record who signed the document and when, including details like timestamps and IP addresses, ensuring the integrity and authenticity of electronically signed documents.
Myth 3: eSignatures Are Difficult to Use
Many believe that eSignatures are complicated and difficult to use; this is not true. Modern electronic signature tools are as easy and intuitive to use as sending an email. Every document, now signed anywhere in the world in a few clicks on any device, makes the process highly efficient. According to a study by Adobe, 85% of businesses using eSignatures have seen faster turnaround times. This ease of use saves time, reduces frustration, and speeds up business processes for everyone—from the tech-savvy professional to the least digitally literate person.
Myth 4: eSignatures Are Only for Big Companies
There is a belief that digital signatures are applicable only in large companies. The reality is that solutions in eSignatures are very pocket-friendly and available to businesses irrespective of their size. This also benefits small and medium-sized businesses by simplifying workflows and reducing costs for printing, postage, and storage. In fact, the average company saves approximately $36 per document when using electronic signatures. This could also provide a higher level of customer experience, since the use of eSignatures provides modern, efficient methods for dealing with document signing.
Myth 5: eSignatures Are Not Accepted in All Industries
Another misconception about eSignatures is that they are field-specific; on the contrary, they have broad acceptance across a number of industries, including healthcare, financial, and real estate. These platforms are compliant with the specified regulations of different industries and safeguard the documents that require protection, making them secure and of legal effect. For instance, in the healthcare sector, the use of eSignatures is under HIPAA regulations, while in finance, they come under the E-SIGN Act and UETA. Their flexibility and ability to comply with different regulatory requirements make them trustworthy for various professional environments.
Myth 6: eSignatures Are Expensive
Some businesses do not use eSignatures because they think it is an expensive deal. The cost of different platforms can vary based on the number of users. However, investing in these platforms typically pays off in the long run because the return on investment (ROI) is usually positive. According to the Aberdeen Group, companies can save $20 per document without paper processes, which is really cost-effective. Eliminating expenses related to printing, paper, ink, postage, storage, and labor costs, eSignatures offer a cost-effective solution for improving efficiency and productivity.
Myth 7: eSignatures Cannot Be Used for International Transactions
The use of eSignatures is considered by many to be inappropriate for transactions across borders. However, they are universally accepted because of legal frameworks like the UNCITRAL Model Law and the regulation set by the EU known as eIDAS. These frameworks provide assurance about the validity and enforceability of eSignatures across borders. According to a report by the International Chamber of Commerce, 78% of global businesses make use of eSignatures in international transactions. Most eSignature providers are multilingual and allow for currency conversion, making every transaction smooth at any place on the globe, hence facilitating international business operations.
Myth 8: eSignatures Are Not Environmentally Friendly
Some believe that electronic processes consume more energy and resources than paper-based ones. Well, the reality is different. Actually, eSignatures are more eco-friendly. By avoiding paper, printing, ink, and the storage of hard copies, they save a lot in terms of the ecological footprint of document flow. A study reveals that a business may save more than 2 billion sheets of paper and decrease CO2 emissions by 200 million pounds within one year of operation on an eSignature basis. In this respect, eSignatures turn out to be one of the keystones of green business.
Myth 9: eSignatures Cannot Handle Complex Documents
There’s a misconception that eSignature platforms can’t manage complex documents. The fact of the matter is that an eSignature is developed to deal with various document complexities, from simple forms to multi-page contracts with several signers and conditional logic. Advanced features make it easier to handle such documents. According to P&S Intelligence, this demand for advanced eSignature solutions worldwide will jump to $13,407 million by 2030. This hence makes the eSignature platforms suitable for a wide array of documents and business needs.
Myth 10: eSignatures Only Work When You’re Online
A common misconception is that you need to be online to use eSignatures. Many eSignature platforms offer offline capabilities. You can sign documents without an internet connection, and the platform will sync the signatures once you’re back online. This feature is especially useful for professionals on the go or in areas with limited connectivity. According to a study by Forrester, 64% of eSignature users appreciate the ability to sign documents offline.
Let’s ditch the myths and embrace the future!
Knowing these eSignature facts will let you put some of the most common myths associated with electronic signatures to bed. eSignatures are legally binding, secure, user-friendly, and suitable for varying business sizes and industries. They contribute to sustainability and improve record-keeping, employee satisfaction, and remote work, while also improving customer experience. Adopting eSignatures in your business will change the way you do business by making it more effective, secure, and environmentally friendly.