Third-Party API Integrations for Your Software: Benefits, Challenges, and Best Practices

 

Application programming interfaces (APIs) are essential tools that allow different software applications to communicate, share data, and work together smoothly. They also allow for seamless incorporation of pre-built features and data from external providers into your own applications. Whether you’re crafting a social media platform enhanced with third party API integration, or enriching your e-commerce site with secure payment gateways, APIs can save you lots of time and resources.

In this post, we explore various types of APIs, their benefits, and the challenges associated with third-party integrations. Read the full article on our blog and explore factors to consider when selecting the most fitting API protocols to ensure smooth integration and a flawless user experience. As well as get expert advice and tips from Apriorit specialists who provide actionable strategies to navigate and optimize third-party integrations.

This article will be helpful for tech leaders and business owners exploring ways to optimize the development process and integrate new functionalities into their products.

What are APIs? Types and purposes

An API is an intermediary program that serves as a bridge, enabling seamless communication and collaboration across different parts of software and independent applications. Each time a user interacts with an application, it sends data to a server through an internet connection. The server then interprets this data, executes specific actions, and transmits a response, which the application decodes and presents in a user-friendly format. This whole process happens via APIs.

Businesses use APIs for many different purposes, from integrating data to automating processes, leveraging a wide range of available API options. APIs can be classified into four main types based on how they’re used and what level of permissions they offer developers. Here are these types, along with some third party API examples:

Public APIs. These openly accessible interfaces are available for any developer or business to use and are often monetized based on user volume or server calls. For example, Google Maps has a third-party API whose use is billed based on the number of searches. Public APIs facilitate data sharing between businesses and offer services such as payment gateways, mapping tools, and social media authentication.

Partner APIs. These interfaces are only available to partner companies and enable partners to interact. They are used to share semi-sensitive data, such as CRM records, and offer limited data access. To access another company’s data through this type of API, a partner must undergo stringent authentication procedures. Partners typically have strong security as well. Usually, partner APIs aren’t monetized directly, as businesses directly compensate partner companies for the services they provide, while APIs function as a secure conduit for providing these services. One of the most popular partner APIs is PayPal. Partner businesses can securely access and exchange data with the PayPal API to handle payments and verify financial information.

Internal APIs. These private interfaces operate within a company, connecting many software segments to create a unified business ecosystem. Although internal APIs are considered to have weaker security measures due to their internal use, there’s a growing awareness among companies regarding potential security threats. Governments also impose security requirements, such as the GDPR, CCPA, and HIPAA, prompting companies to enhance the security of internal APIs.

Composite APIs. These interfaces combine different APIs to manage interdependent operations or streamline complex processes without compromising performance or speed. Developers can tailor composite APIs to meet specific business needs, crafting unique experiences and optimizing workflows. This way, developers can reduce network overhead and enhance overall system performance.

In this article, we’ll talk about third-party APIs, which are usually either public or partner APIs. Let’s take a look at why you should be adding these application programming interfaces to your software and what to consider before doing so.

Benefits and challenges of third-party integrations

So, what is third party API integration? It offers business owners the advantage of a ready-made solution without the need to build their own software from scratch. However, before deciding to integrate an API into your software, you need to explore the possible advantages and pitfalls.

Here are the third-party integration benefits for your business:

• Accelerated development. By integrating existing solutions, you can save lots of time that would otherwise be spent on developing something that’s already available.
• Cost-efficiency. APIs are relatively cheap and quick to integrate, so you can invest saved resources in developing unique features that will make your software stand out from the competition.
• Enhanced functionality. You can leverage access to well-tested functionality developed by companies with extensive experience in their domains.
• Better user experience. You can provide your users with a richer experience, including functionality such as secure payment gateways, social media login, or language translation services.

APIs greatly aid the software development process, but they come with certain concerns. Before adding third-party integrations to your project, here’s what you need to consider:

• Management issues. While adding functionality via APIs is convenient, too many third-party integrations can make your app’s infrastructure chaotic and hard to manage and maintain. Different API providers have different agreements and latency times, and these inconsistencies may cause performance issues and data reception problems during integration.
• Budget constraints. Fixing issues caused by integrating too many APIs may inflate project costs, even though third-party integrations are usually budget-friendly. Fixing any issues with your APIs, including security, functionality, or infrastructure issues, requires additional spending on your part.
• Limited provider support. If something stops working, you can’t always rely on your provider to quickly fix the issue. Dependence on API providers for issue resolution may result in production delays.
• Lack of control over functionality. Third-party API providers determine available functionalities, limiting customization options. So, you need to take it or leave it when it comes to their set of features. Don’t expect a third-party integration to suit all your personal needs and preferences: in most cases, you’ll need to adapt your project and seek compromises.
• Security concerns. Before integrating a third-party API, carefully assess the security measures implemented by the API provider. Make sure that your chosen API provides robust authentication methods to identify users and authorize access to endpoints. Otherwise, your sensitive data might be susceptible to various threats like man-in-the-middle attacks.

It’s worth noting that most popular API providers strive to accommodate developers’ and businesses’ needs, but smaller development companies may lack thorough testing. From our experience, we recommend you exercise caution with less-known APIs that might not have gone through a rigorous third party integration testing process. Read the full article and explore how to make your APIs function effectively with the help of correct protocols.