Understanding the API vs. integration difference and knowing which one to use and how is crucial for building, managing, using, and developing software effectively. Also, it can help you offer a better reference to your team of what you need and want. Besides knowing the difference between api and integration, it’s very important to know how to make use of both, not just one or the other. If you are still trying to understand the difference between API vs. integration and which method is best for your data needs, or you simply want to learn more about each one’s advantages, processes, and situations where you can use them, stick till the end of this article.

What is the difference between API and integration?

Before showing you the key difference between API and integration, let’s first get the terms right and make sure we understand what each one does. Let’s first start with an API (Application Programming Interface). An API allows two different software applications to communicate with each other and share data. It basically connects smaller apps to help your main software with different purposes. While an API provides the tools for two systems to exchange information, an integration is connecting those two separate systems so they can work as one. Integrations make everything work smoothly. Here’s a graphic that will better represent the difference between API and integration:

API Development from scratch

Developing the API instead of just integrating the existing one is the right decision if you need:

• A custom user interface must provide users with a unique experience using it. It is important in the travel industry, where travel tech companies want to win the competition with other companies in meeting users’ specific needs and demands. In such a case, it is better to allocate resources to develop it from scratch. A bright example is Airbnb’s user interface, which is intuitive and simple for users;
• Complex business logic is another vital reason for developing APIs on your own, as it demands the creation of unique functionality that specifically your product needs to perform certain actions or provide services;
• Performance-critical APIs  like real-time data processing require a high level of performance. For example, in the travel industry, there is flight search, which requires processing large amounts of data in real time to provide users with relevant information about flights. 

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Advantages of API development from scratch

The first and foremost advantage of developing APIs from scratch is greater control over the functionality. It means you can manipulate each aspect and ensure that it works exactly as you need and without any restrictions or limits as API integrations have. It depends on the project, but for the travel industry, greater control over an API can positively impact the user experience. 

Customization. You need a custom API that is designed to your requirements to make a unique user experience, meet the project’s specific needs, and satisfy the target audience. While the existing API already has a designated and developed feature that may meet your needs with limited functionality, a developed one gives you the freedom to customize it as you need and want.

Process of developing API from scratch

With all the advantages of the developed API, it is crucial to understand the development process, its demands, and its timescale to objectively compare it with API integration. 

• Gathering software requirements – Helps to understand the purpose of the API and what problem it solves. It is an essential part of the development process as it defines the whole process.
• Design – After collecting and approving the requirements of the API, the next step is its design. It involves developing mockups, wireframes, and outlines of the API look. 
• Development of the API – The core process of actually creating the API. This step involves coding everything that was documented in the previous two steps. 
• Testing. A crucial step as proper testing ensures that the API will be as high quality as possible. During this step, the team conducts manual and automated testing to reveal all the possible bugs to remove them before the deployment. Remember that the sooner you find bugs, the easier and cheaper it is to fix them. 
• Deployment. The final step is to deploy the API for the users.

Examples of successful projects that benefited from developing an API from scratch instead of integrating:

• Custom Search Algorithm in AirBNB. This developed-from-scratch feature provides users with personalized accommodations separated from competitors.
• Personalized deals in HotelTonight. Based on machine learning algorithms, it recommends hotels according to users’ preferences. It allows the product to provide users with a highly personalized experience.
• Price forecasts from Kayak. It predicts an increase or decrease in prices for flights or hotels, which helps customers to save money on travel.
• AI-powered flight booking in Hopper. This feature allows customers to find the most profitable deals by finding the best combination of price, convenience, and flexibility. 

API Integration

Despite all the advantages and profits of developing APIs from scratch, API integration has the following reasons to be chosen:

• Significantly reduced time of development, as integrating APIs saves time and resources thanks to already built functionality and services, which helps to speed up the development;
• A cost-effective solution in comparison to development from scratch;
• Specialized expertise and availability of a wide range of features and solutions, which can be even more useful than a team can develop in-house;
• Improved reliability and scalability.

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What APIs are the fittest for integration?

API integration services offer a large amount of APIs to integrate, but some of the most popular that people use the most are:

• Payment processing integrations: These allow a secure and efficient way to process payments using a range of the most popular and comfortable payment options for clients;
• Mapping and location services: It is often used in apps for delivery services, ride-sharing, or even travel-related apps. These provide real-time geographical data that allows the app to give you personalized services.
• Social media integration: Mostly effective for marketing, user engagement, and authentication purposes. This can enable users to log in and interact with social media from within the app.

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Process of integration APIs

Integrating APIs is less daunting than actually developing your own, so if you believe that this is more beneficial for your needs, here are the steps you should take to integrate an API to your software:

1. Researching available APIs: Find an API that fully meets your needs and demands. Compare them based on features, pricing, and ease of use.
2. Considering the fittest API: To make the right decision, keep in mind the following factors: the quality of documentation, support, maintenance, and compatibility with your tech stack.
3. Integrating the API: This includes setting up the API, configuring it, and connecting to your codebase.
4. Testing the integration: This is the last but not the least important step where you ensure that the feature works as expected and correctly.

When to Use API vs. Integration

Now that you know more about each of these two approaches, let’s help you decide which one to use and when, depending on your specific needs. Firstly, some factors to consider are a scope of communication, level of customization, and frequency of interaction, so let’s take them one by one: 

• Scope of communication. If you really need to access and modify specific functions or data in another system, use an API. On the other hand, if you need to connect systems or applications entirely to make them work together, exchange data, and maintain workflows over time, use integration.
• Level of customization. Use an API if your software requires a lot of customization and flexibility to access specific services or functionalities between systems. Use integration if you are okay with maintaining an ongoing connection between platforms with minimal to no customization.
• Frequency of interaction. An API is a one-time or occasional solution that usually helps with requesting data on demand, such as retrieving location information from a user. An integration is for continuously exchanging data and automation, such as constantly having data synched between CRM and the marketing platforms.

To make this an even easier choice, here are some real-world scenarios that you might position yourself in or are similar to your needs:

You need an API if you…

• Need to fetch data from external systems, like a news app that constantly pulls the latest articles from different sources.
• Want third-party authentication and allow users to log in to your app using their third-party social media accounts.
• Send data to any service, like having an SMS provider API that sends order confirmation text messages.
• Have real-time data updates, like a stock trading app that always shows you market data in real-time.

You need integration if you…

• Want to sync your customer data between your CRM and email marketing platform or similar integrations that automatically update both systems on a new data entry.
• Want to have all your purchase orders, invoices, or financial transactions reflected in both the ERP system and the accounting software to keep your financial data synchronized. 
• Have a physical inventory and want always to keep it updated after an item is sold online.
• Need your HR system to sync employee data with the payroll software.

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Conclusion

Hope we made it clear that you shouldn’t choose one or the other. It’s true that an API is not an integration, and an integration is not an API, but they work in tandem and each has its own purposes.  The question shouldn’t be “should I use API vs. integration?”  but rather, how can you better make use of both and how to blend them into your system or software to take advantage of what they can do together.