Why API integration is more urgent than ever

Over 40% of developers report that their companies generate revenue through APIs and APIs drive 80% of all web traffic. If you are not using an API in your business yet, you are sleeping on one of the most effective customer onboarding solutions known to the current market.

This article is to guide you through the importance of API integration for businesses in the current landscape. Based on the statistics of API use, we will break down the main advantages of API implementation in different spheres of business.

Understanding API integration

API integration is the process of connecting two platforms with different code and software by adhering to specific protocols. Once connected, these platforms can exchange data through the APIs, enabling real-time information sharing. Integrating an API of another platform or app into your own website improves the flow of information exchanged. In addition, it gives your clients a broader range of services to use and activities to engage in.

How exactly does this work? Apps communicate through an API by sending and receiving requests and responses. Most often, they do it over standard protocols, which are the HTTP methods like GET, POST, PUT, and DELETE. When one platform wants to access services or data from another platform, it sends a request to a specific endpoint in a structured format. After processing the request, the receiving server returns a response.

The main reason why API integration is gaining popularity is that it enables seamless interrelation between various platforms.

It allows businesses to automate their workflows, improve efficiency, and deliver faster, tailor-made services for each client. Furthermore, 45% of companies consider APIs to be a significant revenue driver, which is a solid indicator of success for API integration.

Collaboration between multiple platforms and services is getting more relevant in the global network. APIs make it easier to integrate different systems, fostering innovation and collaboration across industries. This interoperability enhances user experiences, streamlines operations, and supports scalability, basically bringing every app or website to the peak of its productivity.

Benefits of API integration

So main benefits of API integration include:

• Interconnectivity between systems
• Seamless operations
• Improved scalability
• Enhanced user involvement

Let’s explore each one of these advantages in more detail and see how it can apply to your business.

No more manual effort

Thanks to task automation, APIs significantly simplify any existing business processes. Otherwise, they would require manual intervention, which is an extra loss of precious time both for the business and its clients. A good example is facilitating the transfer of data using an API, which can minimize errors and save time. In addition, APIs can automatically trigger different actions based on specific needs and events. When a company integrates a payment system like Stripe into its website using an API, the API automatically transfers the data of the payer and completes the transaction.

72% of organizations have an API strategy in place to drive digital transformation, basically freeing their hands and allowing them to fully concentrate on those aspects of business that can’t be automated.

Additionally, APIs enhance processes across departments, ensuring consistency and reliability. Integrating different software solutions creates an environment in which every component is in its place. There, information flows seamlessly, reducing any possible gaps in data. As a result, the organization becomes more flexible and quickly adapts to changes and market demands. Manual processes cease to be a hindrance thanks to the smart API integration.

Seamless interaction between different systems

Another important aspect of an API is the way it simplifies interaction between different systems, even when their code is different. APIs do so by creating standardized protocols for communications. Think about connecting a well-known work management platform Monday to Slack so that all employees of a company can be promptly notified about the new tasks assigned to them.

As a result, even those services that are completely different at their core can exchange information effectively. For example, a customer relationship management (CRM) system can communicate with a marketing platform via an API, creating a cohesive ecosystem that speeds up collaboration between different departments.

Moreover, APIs facilitate the integration of legacy systems with modern applications, allowing businesses to maximize existing investments while adopting new tools. This capability improves operational efficiency and empowers organizations to innovate. By enabling seamless data sharing, APIs help companies stay competitive by quickly adapting their systems to meet evolving business needs.

Rapid deployment of new features

APIs facilitate rapid development and deployment by enabling developers to build on existing functionality. This modular approach allows organizations to integrate third-party services or leverage microservices architecture, where independent components can be developed and updated separately. As a result, companies can accelerate their development cycles, bringing new products and features to market faster, which is crucial in today’s fast-paced environment.

Spotify uses machine learning APIs to improve its music recommendation system. The API helps with analyzing user behavior and handpicks accurate song recommendations in rubrics like Discover Weekly.

Furthermore, APIs foster collaboration between development teams and external partners. Clear documentation and standardized interfaces enable efficient teamwork, regardless of location or organizational boundaries. This collaboration promotes innovation, as developers can experiment with ideas and quickly iterate on designs without extensive reworking. Ultimately, this accelerates the delivery of high-quality services and enhances a company’s agility.

Better access to data and faster decision-making

APIs improve access to data by providing streamlined pathways for retrieving information from various sources. By connecting disparate systems, APIs allow businesses to gather comprehensive datasets that inform strategic decisions. This enhanced access enables organizations to analyze trends, monitor performance metrics, and identify opportunities for improvement, equipping decision-makers with the insights they need.

Online news portals use X’s (formerly Twitter’s) API to retrieve posts on specific topics or with specific hashtags to showcase them in a news article.

Additionally, API-driven data access allows organizations to harness the power of big data and analytics. With real-time data flowing from multiple sources, businesses can apply analytical tools to gain deeper insights into customer behavior and operational efficiency. This data-driven approach fosters informed decision-making, enabling strategies based on empirical evidence rather than assumptions, ultimately enhancing competitive advantage.

Enhanced customer experience

APIs enhance customer experience by enabling integrated and personalized services that cater to individual preferences. By connecting applications, businesses can create a unified view of the customer, allowing for tailored interactions and recommendations. For instance, an e-commerce platform can integrate with social media profiles to offer personalized product suggestions. This customization improves customer satisfaction and fosters loyalty, as customers feel valued. Shopify allows customers to connect their Facebook or Instagram accounts to create personalized product suggestions based on their social media behavior and interests.

Moreover, APIs facilitate real-time communication across multiple channels, ensuring consistent and relevant information. For example, APIs can integrate customer support platforms with CRM systems, allowing representatives to access complete customer history during interactions. This integration empowers support teams to provide quicker assistance, enhancing the overall customer experience. By leveraging APIs for cohesive and personalized services, companies can build stronger customer relationships and differentiate themselves in a competitive marketplace.

Now that we’ve explored the core benefits, let's dive into how APIs actually work and why they are becoming the backbone of digital transformation.

Why API integration is urgent

Large enterprises are indulging in an average of over 300 APIs, while Gartner ominously predicts a rise in API abuses leading to data breaches. Yet, with a staggering 113% year-over-year growth in API usage, the trend is unstoppable.

The urgency of API integration for enhanced customer experience is backed up by the current challenges faced by APIs in different industries. Security and privacy are paramount due to the increased risk of cyberattacks and data breaches. Then, the complexity of integration requires extensive technical knowledge and skilled developers to simplify data formats and ensure effective API testing. Ongoing system maintenance is also crucial, as integrations need continuous updates to function properly.

Besides, diverse system architectures mean that each integration will pose unique issues that require tailored solutions. The aforementioned challenges call for the adoption of new trends in the API realm, mainly the rise of serverless architecture for reducing costs, the API-as-a-product approach, API analytics, new approaches in API security, and many others. Study the more precise solutions below.

Market Trends

There are multiple growing trends in the API development industry that you should not ignore if you strive for effective business API integration and the overall improvement of your processes. Current industry trends underscore the growing need for API integration, particularly in areas like:

• digital transformation,
• remote work,
• data-driven decision-making.

Digital transformation is reshaping how businesses operate, with organizations increasingly relying on interconnected systems to enhance efficiency and improve customer engagement.

APIs serve as the backbone of this transformation, allowing disparate applications to communicate and share data seamlessly. As companies adopt new technologies, APIs enable them to integrate these innovations quickly, ensuring they remain competitive in an evolving landscape. This is one of the main benefits of API integration in the current market.

The shift toward remote work has also proven the necessity of API integration. Given that teams collaborate from different locations, businesses need tools that can maintain productivity. APIs simplify this by allowing cloud-based applications to connect and share information, making it easier for remote teams to access data and collaborate effectively.

Additionally, the rise of data-driven decision-making is driving demand for API integration, as organizations seek to gather and analyze data from multiple sources. By leveraging APIs, businesses can create a unified view of their operations, enabling more informed decision-making and strategic planning.

Recently, Devico has helped Mode, a UK-based digital finance app, implement API solutions for easier buying, earning, and growing crypto. One of the remarkable tools we have used is GraphQL, a query language for APIs, that we applied to streamline the communication between the front-end and back-end of the application. As a result, Mode was transformed from a scattering of concepts into a clear, concise, and user-friendly ecosystem where all options and functions operate harmoniously with one another.

Competitive pressure

As the importance of API integration grows, competitors are increasingly leveraging APIs to enhance their offerings and streamline operations. Companies that adopt API-driven strategies can rapidly deploy new features, integrate third-party services, and create tailored solutions for their customers.

This agility not only improves customer satisfaction but also positions these businesses as leaders in their respective markets. As competitors gain a technological edge through effective API utilization, those that lag in integration risk falling behind, losing market share, and alienating customers who expect seamless digital experiences.

Without API integration, businesses face the danger of becoming siloed and inefficient. Manual processes and disjointed systems can lead to increased operational costs and slower response times, hampering a company's ability to innovate and adapt to changing market demands.

The competitive landscape is evolving rapidly, and companies that fail to embrace API integration may find themselves struggling to keep pace with more agile rivals. To remain competitive, organizations must prioritize API strategies as essential components of their growth and operational efficiency.

One of the recent examples of Devico dealing with competitive pressure is the development of a DeFi wallet. The crypto industry is known for its cruelty when it comes to competition, therefore every solution must be more concise and user-friendly than the previous. The answer? API integration. Devico made the operational efficiency of the wallet skyrocket by using APIs for automated and fast data submission about tokens and their prices, metadata, as well as NFT balances with blockchain parsing and off-chain NFT metadata.

Scalability and flexibility

API integration importance is hard to overestimate when it comes to the business scalability and adaptability, which are essential traits in today’s rapidly changing market. As companies grow, their operational needs evolve, requiring systems that can scale without sacrificing performance. APIs allow businesses to easily integrate new applications and services, ensuring that they can accommodate increased demand without overhauling existing infrastructure. This flexibility enables organizations to respond swiftly to market changes, customer demands, and emerging technologies, fostering a proactive approach to growth.

Besides, APIs facilitate modular development, allowing businesses to adopt the best possible approach when selecting software solutions. Companies can integrate specialized tools for various functions, such as customer relationship management, marketing automation, and analytics.

This adaptability not only improves operational efficiency but also empowers organizations to react quickly in response to new opportunities or challenges. In a landscape characterized by rapid change, API integration equips businesses with the scalability and flexibility needed to thrive and remain relevant.

There is no better example of a platform that requires high scalability and security than a digital payment solution like Moneygate. Devico used an API to streamline user authorization and authentication, precisely an API of the operating system enabling interaction with biometric sensors. The simplified user authorization improved the scalability of Moneygate and made its adaptation to an ever-growing flow of customers easier.

How to get started with API integration

Effective API integration is a multifaceted process that includes such steps as planning, development, primary testing, deployment, secondary testing, and regular updates. However, the procedure is not as daunting as it may seem. In fact, there are several useful tips that can help you get started with API integration easily.

1st step: Planning

The average number of APIs used by large enterprises is over 300 and this number continues to grow at an unprecedented rate. However, no one rushes to developing and integrating an API as soon as they find out about its unique properties. Instead, a stage of careful planning precedes the primary tries in API integration.

In the planning process, identify precisely the goals of the company and challenges that must be solved with API integration. Analyze the already existing systems and their performance to define what’s lacking and which processes can be improved.

During this stage, you must also define which type of API will be best suited for solving the particular issues of your performance. Consider such factors as compatibility, functionality, and security. Of course, don’t forget to outline such possible restrictions as timelines, budget, and resource allocation.

2nd step: Development

Right after planning comes the development phase. In it, developers work on building the API based on the goals and objectives set out during planning. They start with writing the code that will connect different applications with each other. They use previously chosen API types to facilitate data exchange between various apps.

The main task of the developers is to ensure that data formats are compatible, set up authentication protocols, and put in place various error-handling mechanisms. In the process, developers might collaborate with other teams and departments to ensure that the integration process aligns with the company’s aims and expectations.

3rd step: Testing

Primary testing of an API before its deployment is the best error handling at the early stage of an API’s life cycle. Security is an ever-growing problem in modern API development. Therefore, testing is crucial for detecting possible gaps in security and assessing the overall performance and vulnerability of an API.

In addition, developers test the scalability, which is the way an API reacts and performs under different loads of information and overall pressure. The most popular test types in API integration are unit tests, integration tests, and user acceptance tests. Thanks to them, developers are able to identify any issues or bugs at an early stage before deployment.

4th step: Deployment

Over 60% of businesses have seen an increase in revenue due to API investments, henceforth, a proper API deployment is key to the spike in sales. As soon as the testing phase is complete and all possible bugs and issues are resolved, developers commence the deployment phase. During it, API is implemented into the platform or app directly, becoming live and usable for customers. After the API is successfully deployed, it is important to notify the stakeholders and any other persons whose workflow might be altered or impeded by the recent API integration.

5th step: Monitoring and maintaining

Ensuring the maximum performance and reliability of your API must be your top priority in any scenario. Developers must monitor the newly integrated API at all times, ensuring that it remains effective and secure. Developers must track performance metrics, error logs, and user feedback in order to detect any problems that can occur after the launch. Then, they conduct regular maintenance procedures that may include updating APIs, fixing bugs, and making necessary adjustments.

It is note-worthy that 85% of organizations believe that APIs have accelerated their time-to-market for new products, and precise monitoring and regular maintenance are the best tools for finding out how your own integrated API has influenced the processes of your business.

Conclusion

API integration is a game changer when you want to maximize the performance of your web platform or application. By creating seamless connections with other services, you can:

• enrich databases,
• improve user experience,
• create watertight security,
• boost the visibility of your company on a global scale through communication and cooperation.

And yes, API is one universal tool that ticks all of these boxes and more.

Are you ready to revolutionize your approach to data utilization and see what your application really can do when you max it out? Take the first step toward improving your business with Devico.