API Integration: What it is & Why you need it?

By Beate Thomsen, Co-founder & Product Design - December 16, 2024

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APIs are all around us. It’s mind-blowing how often we make use of them every single day. That’s why it’s important to understand what API integrations are.

Just like a universal remote control helps you interact with your TV set, audio system and your gaming console, an API allows software applications to communicate and interact with each other.

You don’t have to understand how each system works and its underlying complexity – APIs take care of that. But what exactly are APIs?

In this article we will analyze:

  • What are APIs?
  • How do APIs work?
  • What are the benefits of APIs
  • API examples
  • Types of APIs
  • API protocols and architecture
  • How do you integrate APIs?

WHAT ARE APIs?

API stands for Application Programming Interface, and it’s a set of rules and protocols that allows different software applications to communicate with each other. APIs help systems integrate and seamlessly exchange data.

For example, when you use a weather application on your smartphone, it communicates with a remote server via an API to fetch and display the latest weather information.

For businesses, APIs simplify and centralize access to essential systems, allowing these platforms to talk to each other without hindrance – just like a universal remote control gives you access to multiple devices.

The result? Efficiency of use is up, development time is down, and customer experience is smooth and enjoyable.

In fact, modern software development is unimaginable without API integrations because they:

  • allow developers to build applications that can interact with other services and platforms;
  • define the methods and data formats that applications can use to request and exchange information;
  • ensure compatibility and efficiency in communication and user experience.

HOW DO APIs WORK?

As we’ve already established, APIs function as intermediaries that facilitate communication between different software applications.

Here is how we can simplify the process when an application needs to access data or functionality from another system:

  • An application sends a request to the API, specifying the desired operation ⤵️
  • The API processes this request ⤵️
  • It interacts with the underlying system to perform the operation and ⤵️
  • Returns the response to the requesting application ✅

But, let’s put it into context and visualize it.

Let’s imagine you (the client) come to a library and head to a service desk to ask for a certain book you want to read.

Naturally, to get served you don't need to know how the library organizes its collection or where exactly each book is. All you need to know is how to make a proper request at the service desk. And, yes, the service desk in this example is the API.

So, when you interact with a library:

  1. You check the library catalog (API documentation).
  2. You fill out a request (make an API call) asking for "Mobi Dick" by Herman Melville.
  3. The librarian (server) processes your request.
  4. They fetch the book from the restricted section (database).
  5. They hand you the book (return the response).

And voilà – you’re done!

Now, let’s put this into API terms. Let's say you're building an app that needs stock market data. Instead of tracking all market data yourself, you can use a financial API.

api_calc_example

In a nutshell, just how a library has standard procedures for borrowing books, APIs create a standardized way for software to communicate.

You don't need to understand the library's filing system – you just need to know how to request books, right? Similarly, you don't need to know how a stock market tracks prices – you just need to know how to request data through their API.

But, if we want to get really technical about it, this process involves several elements (protocols):

  • Endpoints: Specific URLs provided by the API where requests are sent.
  • Methods: The type of request being made, such as GET (retrieve data), POST (submit data), PUT (update data), or DELETE (remove data).
  • Parameters: Additional data is sent with the request to specify details like filters or search criteria.
  • Response: The data is returned by the API, often in formats like JSON or XML.

By following these standardized protocols, APIs help applications interact and share information effectively.

WHAT ARE THE BENEFITS OF AN API INTEGRATION?

To put it simply – APIs help you to NOT reinvent the wheel every time and use the already existing solutions instead.

Imagine an e-commerce platform that needs to process payments. Instead of building a payment processing system from scratch, the platform can integrate with a payment gateway's API. This integration allows the e-commerce platform to process payments securely and efficiently by using the already existing infrastructure of the payment gateway.

Here are the top 5 benefits of an API integration:

Save time and resources

APIs do the heavy lifting for you. Instead of building everything from scratch, you can use already existing services. If you decide to build a shopping app, rather than creating your own payment system (which could take months), you can use PayPal's API and have payments working in days.

Access expert services

APIs let you use specialized services instead of building your own amateur version. Want accurate language translation in your app? Instead of hiring linguists and building translation tools, you can use Google Translate's API and get access to one of the world's best translation services instantly.

Link different systems with ease

Just as a power adapter lets you plug your devices into any socket worldwide, APIs let different software systems talk to each other smoothly. Your JavaScript app can easily work with a Python backend, and your Windows program can communicate with Mac services.

Stay up-to-date automatically

APIs allow you to always get the latest information without doing the reporting yourself. Because the API provider handles updates and improvements, and you just receive the up-to-date information. When using a weather API, you automatically get current weather data without maintaining weather stations.

Scale your business worry-free

When your business grows, APIs can handle increased demand automatically. If your app suddenly gets 5,000 new users, APIs can automatically scale up server capacity without you needing to do anything. You pay for what you use, making growth manageable and cost-effective.

EXAMPLES OF APIs

APIs are literally everywhere. You’d be surprised how often during the day you encounter and use API integrations. Let’s review some of the most known API uses in our everyday lives.

📱Logging into apps

When you log into an app or website using your Google, Facebook, Apple or bank account, an API connects the app to your account provider to authenticate you. It allows the app to verify your identity without storing your credentials.

💲Online payments

When you shop online and select a payment option like PayPal, Apple Pay or Google Pay, APIs handle the secure communication between the store and the payment provider. The website doesn't process the payment itself, it calls the payment provider's API to complete the transaction.

🍂Weather apps

When you check the weather on your phone or a website, the app retrieves real-time data from weather services like, for example, OpenWeather or Weather.com via APIs. The weather app doesn't gather the data itself, it uses an API to fetch updates.

🚘 Ridesharing and navigation apps

These apps use APIs to show your location on a map, calculate fares, or even integrate payment systems, like in Uber or Lyft. They also give you users directions, warn about speed limits or traffic warning, highlight points of interest, and more.APIs connect the app to map services, GPS data, and payment platforms.

📺Streaming services

When a video streaming network (like Netflix or Hulu) recommends shows or an audio platform (like Spotify or Apple Music) curates a playlist, APIs fetch data like your viewing or listening history to make personalized recommendations. APIs allow these services to retrieve and analyze data to create tailored experiences.

🗣️Voice assistants

When you ask Alexa, Siri or Google Assistant to turn on your lights, check the news or find a meal’s recipe, APIs link the voice assistant to smart devices or information sources. APIs connect the assistant to third-party services or devices to execute your commands.

🏠 Smart Home devices

Similarly, your smart thermostat adjusting the temperature or your smart fridge notifying you of low milk levels involves APIs to communicate with the devices. APIs allow apps to send commands and retrieve status updates from your smart devices.

🌎 Travel booking sites

When you search for flights or hotels on aggregator sites (like Expedia, Kayak or Tripadvisor) APIs gather real-time availability and pricing from airlines or hotels. The aggregator doesn't store all this information, instead it calls APIs from airlines and hotel systems to retrieve it.

🥡 Food delivery apps

When you order food through apps, APIs link the app to restaurant menus, delivery tracking systems, and payment processors. APIs pull real-time menu options, process your payment, and track your order in one seamless flow.

🧑💻 SaaS tools

APIs are also part of the Software as a Service (SaaS) solution. Often businesses connect their website, email platform, and customer support tool with their CRM via APIs to automatically log customer interactions, update records, or trigger workflows. APIs allow the CRM to fetch data from multiple systems, ensuring a unified customer view without manual entry.

As you can see – APIs power much of the convenience we enjoy today, connecting apps and services in ways that feel effortless to the user.

TYPES OF APIs

There are 4 main types of APIs. Here is a quick overview of what each of them do and are used for.

TYPE

PURPOSE

EXAMPLE

Data APIs

Allow one system to request or share specific data with another system.

A weather app on your phone fetches real-time weather data from a weather database via a Data API.

Operating System APIs

Enable apps to interact with the underlying system software or hardware of a device.

A video game on your computer uses an Operating System API to detect your keyboard and mouse input.

Remote APIs

Let systems communicate over a network, even if they’re located far apart.

An e-commerce website checks the status of your delivery by communicating with a courier company’s system via a Remote API.

Web APIs

A type of Remote API that work over the internet using web protocols (like HTTP) to connect systems.

A social media app allows you to log in via Facebook, Apples or Google accounts using their Web APIs.


Those are the Web APIs that are used more often nowadays. Web APIs come in various types, each serving different purposes:

  • Open APIs (Public APIs) – available to external developers and users with minimal restrictions and intended for external users (developers at other companies, for example) and can be freely accessed.
  • Partner APIs – exposed by/to the strategic business partners and are not available publicly. These require specific rights or licenses to access.
  • Internal APIs (Private APIs) – hidden from external users and only exposed by internal systems, and used within an organization to share resources among different teams or systems.
  • Composite APIs – combine multiple data or service APIs, and allow developers to access several endpoints in one call. These are useful in microservice architectures where a user may need information from multiple services to perform a single task.

API PROTOCOLS AND ARCHITECTURAL STYLES

Now it’s time to discuss what API protocols and architectural styles are.

Knowing what these concepts mean can help you choose the right approach for specific projects, like real time updates or flexible data querying. By understanding both, developers can choose the right tools and designs in order to build efficient and user-friendly APIs.

💡 Important distinction: while API protocols focus on the "how" of communication, the API architectural styles focus on the "design" or structure of the API.

API protocols are rules and standards that allow different software systems to communicate with each other. They define how requests are made, how data is sent and received, and how errors are handled. In other words, an API protocol is the language that systems use to "talk" to each other.

  • HTTP (HyperText Transfer Protocol) is used for most web-based APIs. For example, when you use a weather app to check the forecast, the app makes an HTTP request to an API, which returns the weather data.
  • SOAP (Simple Object Access Protocol) is a formal and structuredprotocol that uses XML to send messages. For example, banks and financial institutions often use SOAP because it's highly secure and has built-in error handling.
  • gRPC (Google Remote Procedure Call)is a modern, high-performance protocol using binary data for faster communication. For example, it is used in real-time systems like video streaming or chat applications.
  • WebSocket protocol is a communication standard that allows a continuous, two-way connection between a client (like your browser) and a server. This means that both the client and server can send and receive data at any time without needing to re-establish the connection. For example, it’s used in real-time applications like chat apps or live sports scores where you need instant updates.

API architectural styles are design patterns that guide how an API is structured and interacts with systems. They help developers organize the API in a way that’s consistent and efficient.

  • REST (Representational State Transfer) is the most common style for APIs, as it relies on HTTP and uses standard web methods (GET, POST, PUT, DELETE) to handle data. Most modern web services use REST because it's simple and works well with the internet. For example, social media platform X (formerly known as Twitter) is REST-based.
  • GraphQL allows clients to request exactly the data they need and nothing more. Instead of getting a fixed set of data (like with REST), you can specify precisely which pieces of information you need. For example, Facebook's API uses GraphQL, enabling apps to fetch specific pieces of data, like a user’s name and profile picture, in one request.
  • RPC (Remote Procedure Call) allows a program to execute a function or procedure on another server or computer as if it were a local function. Instead of manually managing data transfer or communication, the client sends a request to the server specifying the function to call and any required input data. The server processes the request, runs the function, and sends the result back to the client.
  • Webhooks allow sending data automatically when an event happens, instead of waiting for a request. Instead of constantly checking for updates (like with regular APIs), webhooks notify you when something happens.For example, online payment systems use webhooks to notify your app when a payment is successful.

HOW DO YOU INTEGRATE APIs?

APIs connect different apps and services and make them work together. But if you really think of it – APIs transform the quality of our digital life, making it more and more convenient.

That’s why we need to know what integrating APIs involves. So, let’s glance at a breakdown of the API integration process:

1. Understand your need

Start by identifying the API purpose and decide what you need the API for. Then, determine what the functionality or data your application requires from another system. Next, research APIs that fit your requirements. Look for documentation, supported features, and pricing to choose the right API.

2. Obtain access

Register for API access. After registration, you'll typically receive an API key, token, or client credentials for authentication.

3. Study the documentation

Learn about the API’s endpoints (specific URLs), request/response formats, methods, such as GET, POST, etc.), and authentication process. Pay attention to the limits on how many requests you can send per minute or day.

4. Test the API

Test API endpoints manually to see how they respond. Experiment with incorrect requests to see how errors are returned and documented.

5. Develop the integration

Write code to send requests to the API endpoints and handle the responses appropriately. Use the language or framework best suited for your project, such as Python, JavaScript, or Ruby. Include your API key or token in the request headers or parameters as required, and use HTTP requests (GET, POST, etc.) to interact with the API.

Here’s an example of using Python:

api_python_example

6. Handle responses

Extract useful information from the API response (usually in JSON or XML format). Check for errors and create fallback mechanisms.

7. Integrate into your application

Incorporate API logic by adding the API functionality to your application workflows, such as displaying data, processing payments, etc. Avoid unnecessary API requests to stay within the rate limits.

8. Test your integration

Do the end-to-end testing by making sure the API works without hiccups in your app. Check for speed, reliability, and correctness.

9. Maintain the integration

Stay updated on API version changes or deprecated features by following the provider’s announcements. Modify your integration if the API changes or updates.

What Rapidi can offer

At Rapidi, we specialize in simplifying API integrations, providing tools and services that enable seamless connectivity between various systems.

Rapidi makes data integration projects as simple and robust as possible.

In particular, Rapidi’s data integration tool easily integrates Salesforce CRM application with any of the Microsoft Dynamics ERP solutions using pre-configured transfers/templates.

Designed to enable direct integration, Rapidi makes your data flow easily between the two systems.

  • Our flexible and user-friendly solutions enable software-specific API and direct database integration via both SOAP interfaces and REST architectures, making your data accessible to all required users.
  • Our solutions allow businesses to integrate APIs without extensive technical expertise. By using the Rapidi’s data integration platform, organizations can enhance their operations, improve data flow, and deliver better experiences to their users.
  • Using highly advanced connection technology, the integration is secure and no changes to legacy systems are required.
  • All data is compressed and encrypted resulting in incredibly efficient, fast and safe data transfer that requires minimal bandwidth.

APIs are more than mere connectors; they are catalysts for innovation. They allow developers to integrate and extend functionalities, breathing new life into existing applications. This capability to innovate without reinventing the wheel is invaluable for companies striving to meet the ever-increasing demands of their customers while staying ahead of the competition.

Frequently Asked Questions

Do I need technical expertise to implement API integration in my business?

While basic technical knowledge is helpful, many API providers offer detailed documentation and support. You can start with simple integrations or work with developers for more complex implementations. The key is understanding your business needs and choosing the right API.

Are APIs secure for handling sensitive data like payment information?

Yes, APIs can be highly secure when properly implemented. They use authentication methods like API keys and tokens, and protocols like SOAP are specifically designed for secure transactions. However, it's crucial to choose reputable API providers and follow security best practices.

What happens if an API I'm using stops working or gets updated?

API providers typically notify users about updates or changes in advance. It's important to monitor API status, have fallback mechanisms in place, and regularly maintain your integration. Many providers also offer version control, allowing you to transition smoothly to newer versions.

How much does it cost to integrate and maintain APIs?

API costs vary widely based on the provider and usage levels. Some APIs are free for basic use, while others charge based on the number of requests or features used. Consider both initial integration costs and ongoing maintenance when budgeting for API implementation.

 


About the author

Beate Thomsen, Co-founder & Product Design

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As co-founder of the Rapidi Data Integration platform, Beate has spent over 15 years on its development, building it around her motto: 'keep it simple, functional yet beautiful.'
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