What Is API Standardization?

APIs are the key to enabling software solutions to exchange data with each other. They allow systems that are written in different programming languages to work together despite their differences. Without APIs, a developer would need to hand construct an integration using files or EDI documents — a process that takes time and resources, often resulting in errors. With APIs, project teams can connect disparate solutions by creating a reusable connection point that is self-serve.

Having clear API design standards reduces ambiguity for developers and consumers, decreases learning curves and speed up the development of apps. It also enables a faster response to problems by reducing the need for time-consuming troubleshooting.

There are various formats for APIs, including REST and SOAP. A specific format is chosen based on the complexity of the information being exchanged, the level of security needed and other considerations. More complex formats may offer greater security but may require a higher learning curve for adopters or more time for developers to code and test.

As the importance of direct mail APIs continues to grow, it’s critical that organizations have a way to monitor API performance, manage scale and ensure quality. This is why API standardization continues to play a vital role in accelerating ecosystem development and helping businesses meet their digital transformation goals. For example, according to the NACHA, standardized APIs help improve transactional safety and automate communication and processes. They also reduce the gap in payment functionality between large and small business entities and help “unbanked” individuals gain access to financial services.