What is S/MIME?
Per Microsoft, "S/MIME (Secure/Multipurpose internet Mail Extensions) is a widely accepted protocol for sending digitally signed and encrypted messages."
As you can tell from the definition above, the 2 main ingredients for S/MIME are:
- Digital Signatures
- Encryption
Using Public Key Cryptography, S/MIME guarantees data integrity and nonrepudiation.
- If Bob wishes to use S/MIME, then he'll need a digital certificate. This digital certificate will contain his public key.
- With this digital certificate, Bob can "sign" the email message with his private key.
- Mary can then decrypt Bob's message with Bob's public key.
- Mary will do the same (send her certificate to Bob) when she replies to his email, and Bob complete the same process on his end.
- Both will now have each other's certificates for future correspondence.
The illustration below will help you understand how public key cryptography works.

Refer to this Microsoft documentation here for more information on S/MIME and steps on how to configure Office 365 to send/receive S/MIME emails.