Comparing electronic and handwritten signatures

Key points at a glance: For most business processes, an electronic signature is legally equivalent to a handwritten signature, is quicker to process and more cost-effective to administer. However, where the law requires the written form — for example, in the case of fixed-term tenancy agreements exceeding one year — a qualified electronic signature or a handwritten signature remains necessary. For certain documents, such as guarantees provided by private individuals, the electronic form is even entirely excluded. The following comparison shows where the differences actually lie in practice.

Handwritten signatures are traditionally regarded as reliable proof of a person’s intention to enter into a contract.

1. Electronic signatures are now largely treated as equivalent to them under the eIDAS Regulation.
2. A qualified electronic signature (QES) fully satisfies the requirement for written form under Section 126a of the German Civil Code (BGB) and, in addition, carries a legal presumption of evidence under Article 25(2) of the eIDAS Regulation. This means that, in the event of a dispute, the signature is initially deemed genuine, and the opposing party would have to prove otherwise.
3. An advanced electronic signature (AES), such as that generated by a signotec signature pad, is sufficient for all contracts without a statutory requirement for written form — in other words, for the vast majority of day-to-day business transactions.

With a little practice, a handwritten signature on paper can be forged, and in the event of a dispute, its authenticity often has to be verified by means of costly handwriting analysis. Electronic signatures with biometric capture, on the other hand, record individual characteristics such as pressure, writing speed, time and acceleration, which are far more difficult to forge than the mere appearance of the handwriting. In addition, the document is sealed with a certificate-based, cryptographic signature, so that any subsequent alteration is immediately detectable — a protective mechanism that paper simply cannot provide.

The biggest practical difference lies in the workflow. A paper-based contract goes through printing, dispatch, signing, return, scanning and filing — a process that can take several days, depending on post delivery times. Electronically signed documents, on the other hand, are ready for finalisation within minutes, regardless of the signatories’ location. For companies with a high volume of contracts, this means a significant reduction in processing times and faster revenue recognition.

Paper-based processes incur ongoing costs for printing, postage, toner and physical archiving, which are eliminated with digital signatures. On the other hand, there are one-off investments in signature pads or software licences, as well as, where applicable, ongoing costs for QES certificates for individual transactions. For medium to high volumes of signatures, the investment in digital signature solutions generally pays for itself within a few months, as postage, staff and archiving costs, in particular, are permanently reduced.

Every paper printout saved not only reduces costs but also a company’s carbon footprint. Eliminating the need for postal delivery also reduces CO₂ emissions from transport. For companies required to publish sustainability reports or with ESG targets, the switch to electronic signatures therefore also represents a measurable contribution to their own carbon footprint.

Despite all these advantages, in certain cases a handwritten signature – or at least a qualified electronic signature – remains a legal requirement. For fixed-term tenancy agreements lasting more than one year, Section 550 of the German Civil Code (BGB) requires the written form, which can only be satisfied electronically by means of a QES. The same applies to consumer loan agreements under Section 492 of the German Civil Code (BGB) and certain fixed-term employment contracts under Section 14(4) of the Part-Time and Fixed-Term Employment Act. In some cases, the electronic form is even completely excluded: under Section 766, second sentence, of the German Civil Code (BGB), a guarantee declaration by a private individual must be signed by hand on paper — even a qualified electronic signature (QES) is not sufficient in this instance. Companies should therefore check which document types are affected before fully digitising their signature processes, and plan accordingly to use QES procedures or continue to use paper for these specific cases.

Is an electronic signature just as secure as a handwritten one?

In many respects, it is even more secure, as biometric features and the cryptographic sealing of the document provide additional protection against forgery that paper cannot offer.

Can customers refuse to use an electronic signature?

Yes, provided there is no legal obligation to use electronic signatures, signatures can generally still be made on paper.

On average, how much time does switching to electronic signatures save?

Depending on the initial process, the turnaround time for signing contracts is often reduced from several days to just a few minutes.

What investment is required to get started?

A signature pad plus a software licence is sufficient for most use cases — full system integration is optional and depends on the industry.

Is the switch GDPR-compliant?

Yes, provided the solution used implements encryption, access controls and data erasure policies in accordance with the requirements of the GDPR — signotec’s solutions are designed for this purpose.

For the vast majority of business processes, electronic signatures are now on a par with, or even superior to, handwritten signatures — faster, cheaper and, in many respects, more secure. Only where there is a statutory requirement for a written form is a higher-level form of signature necessary, and in a few exceptional cases is the electronic form entirely ruled out. Companies should therefore not adopt a one-size-fits-all approach, but rather select the appropriate level of signature depending on the type of document and flexibly cover both scenarios with signotec’s solutions.