Application Programming Interface allows a set of standards, instructions, or requirements to one app to employ services or features of the other app. Hence, it is an app that establishes a connection between two or more apps.
For instance, when we access Candy Crush and it asks to get permission from Facebook, it does not ask us to enter the Facebook page instead it accesses all the data it requires from the Facebook server and allows us to keep on enjoying the game. This is the function of API.
A Vital Mode of Communication
An API is a means of communication between two different services or products and is the base of all apps. The data in one mobile app can be shared with other apps or platforms and simplify the user experience using API. APIs also disregard the purpose of building a separate app for communication from scratch. API development importance is realized and focused a lot by business leaders and app developers due to these factors.
Reason Why APIs are Becoming Crucial for Businesses?
There are many reasons why one would consider launching an API in certain businesses:
1. Faster Success
an organization’s success is defined with the existence of APIs in the modern market.
2. Businesses can concentrate on their Core Areas
Businesses can focus on their concrete offerings and core competencies that rely on APIs.
A company saves the cost of creating a separate app to interact between the two apps and hence not only saves costs but time as well.
4. Businesses run on API
Without its API connection with Twilio, Google Maps, or the messaging platform it would have been impossible for many businesses like Zomato to exist.
These are some of the prime examples to recognize the importance of APIs in our day to day lives. Whether you scout the weather on an app or check the traffic conditions, all these apps depend upon APIs to gather information.
Due to all of the co-dependence that API brings with it, it will pave a new path that will not be hung upon intellectual property rights. The future of this technology is in good hands as there are already over 20,000 public APIs available and the metrics are just going to increase in the upcoming years.
APIs can transform a business. The strategies until now have focused on paperwork, large sales forces, and other time-consuming measures that are expensive and outdated to run the businesses.
Also, the practices have become less sustaining most of the time. Companies that want to improve are already investing their time and money by building the best-of-breed components that can be accessed through APIs. The influence of this technology is growing beyond the tech-based companies considering the Internet of Things. Product strategy must be implemented by organizations and APIs have the potential to do so.
Here are some examples of how APIs bringing innovation in many industries:
APIs in Finance & Banking
Even in the financial and banking industries, APIs are taking over and banks are adapting their methods and technology befitting for API development. APIs are being used in making the shift to digital payments, mobile apps, and blockchain technology.
Below are some areas where APIs can better the industry in finance and banking:
- APIs are the building stone of Digital portals nowadays that helps a customer to exchange currencies.
- The new generational customers prefer cashless payment and methods like Venmo, Google Pay, and Chase QuickPay have built-in APIs in them that allow them to do so.
- If customers want to pay their credit card bills online, check their bank balance on their smartphone, and view the loans they qualify for or even transfer money.
- APIs are necessary for advanced fraud analytics solutions and to enhance their pinpointing ability.
Below are some use cases of API in this banking industry:
1. Facebook Messenger payments
Money can now be transferred to one another using Facebook Messenger
2. Paypal/Siri Integration
Voice messages can be sent now using PayPal and request money.
3. Banking Chatbots
Many common problems can be solved by customers themselves using chatbots.
APIs in Media & Publishing
The U.S. had a weekly circulation of newspapers in 2016 was 35 million according to journalism.org. Before that in 1973 circulation was more than 63 million. To improve the customer’s needs, publishers have now begun to accept the API technology because print is steadily declining.
Below are some places where APIs are beneficial in publishing and media segment.
- There are many online publishers that expect APIs to obtain information from creators and publishers.
- APIs now control content syndication. Custom APIs are now being created by many publishers from the New York Times.
- APIs help to integrate content from the publisher to the user’s smart devices.
Considering the above-listed core benefits it is a wise decision to invest in custom API Development services. You should hire a professionally run Web API development company in India to make the best of this technology and boost your business.