With this feature, you can quickly create and save a signature (so you don’t have to do it every time). You can find the same feature in macOS, where you can choose between creating a signature using the touchpad, scanning the signature from real paper with the camera, or using an iPhone or iPad to write.
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open PDF or other document on iPhone or iPad.
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click to the circled pointer icon (usually in the lower-right or upper-right corner).
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Click now Go to the + icon and select “Signature”
Yes, it’s that simple.
Source: Ferra

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