4 Types of API and Its Functions

APIs serve numerous purposes, such as simplifying protocol and speeding up software development for developers. APIs help unlock data and bridge two different systems while hiding their complexities and working on the details. Since there are a few types of APIs, it's essential to understand which type will work best for each project.

Generally speaking, there are four types of API: open, partner, internal, and composite APIs. Let's look at each of them so you can choose which to use to share your business's data safely and efficiently!

4 Different Types Of Api

1. Partner APIs

You can do a partnership through APIs access, and you can share Partner API externally, but only among business partners or those with a business relationship with the API publisher. Usually, partner APIs are associated with SaaS products or a product of an API-first company. The access is limited with official licenses to endpoint, so the security measures of partner APIs tend to be more robust compared to open APIs. Business partners must apply to get access, often by signing up for a service.

Many businesses prefer this type of API because they can have better control over who can access the resources and how they are used.

2. Internal APIs

Your organizations may use different types of APIs based on the purposes. For the second type of API, as the name suggests, internal or private APIs are not open to the public web services or third-party since they are not intended to be used by third parties. Internal APIs are only available inside a company or internal system of that company, and only the developers within the same company can use them.

Internal APIs are considered more secure, efficient, and traceable. They are intended to connect systems and data within a business, such as your business’ payroll and HR systems. An internal API allows an organization to fully control its systems and data.

Since they are not documented online, usually internal APIs are entirely hidden from the public. They also traditionally have weak security and authentication. However, it’s all changing as more significant threats affect a company’s API strategy.

3. Open APIs / Public APIs

Of all types of API, open API is an available free API for anyone to use publicly or called public APIs. Also known as public or external APIs, third parties external to your organization, such as developers or partners, can also access them. Third parties can utilize the data provided due to the easy implementation and lack of restrictions.

An example of an open API is Ayoconnect which provides this service. Ayoconnect’s open APIs enable your customers to pay for recurring bills through millions of payment points. From retail store chains, kiosks, and agents to users of digital wallets and e-commerce platforms across Indonesia. By using Ayoconnect, you can integrate 4,000+ embedded finance products from 24 categories to your platform more quickly and seamlessly.

4. Composite APIs

This type architecture of API combines multiple APIs that allow developers to make batch calls in a single API request that receives one response from different servers. If developers need data from various data sources or web apps, composite APIs can be used to address complex API behaviors. Using a composite API, you can also set off an automatic chain of calls and responses that require no intervention.

Instead of making several requests, this API provides a more efficient design solution for clients. This resulted in lower server load and overall faster systems.

There are many things to consider before designing and managing effective APIs. This article is an excellent start to understanding your business's different APIs to design, deploy, and control.

You can expand your reach and influence by integrating your business with a suitable API. For those interested in knowing more about how APIs can help your business, Ayoconnect is here to help. As Southeast Asia's most significant open finance platform, Ayoconnect offers services to benefit you and your customers. For more information, read more on Ayoconnect's website!

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