If you’re thinking about launching a new software product or business solution, you might hear the term “API” a lot. But what exactly is an API, and how does it actually work to integrate software? Whether you’re a developer, a business owner, or just a curious tech enthusiast, understanding APIs is essential because they power much of the connectivity and functionality we rely on daily.
At Vertical Motion, most of our custom software development projects rely on APIs in some form. In this article, we’ll give you a simple breakdown of what APIs are, how they work, and some important considerations developers take into account when using them.
What is an API, and how do they enable software integrations?
API stands for Application Programming Interface. Google describes them as the “connective tissue” between digital products, because they allow different software applications to communicate with each other: one app sends a request through the API, and the receiving app uses the API to send a response.

For example, say you’re creating a gardening app that relies on an accurate weather forecast. You’d likely rely on a service like AccuWeather’s API to deliver the weather forecast based on your customer’s location.
Here’s how it works:
The Request
Your mobile app or website sends a request to the API (also known as an API call), with details about your customer’s location in a standardized format.
Processing
The API receives the request and processes it, fetching the weather forecast based on the customer’s location. This may include things like precipitation, temperature, or other weather data your app displays.
The Response
The API sends the weather information back to your app to read and interpret. Your app displays the information based on the parameters you’ve set.
Real-world API integration examples
Chances are, you probably encounter APIs in your favourite apps every day. Here are some common examples:
Website authentications
When you see “Log in with Google” or “Continue with Facebook” buttons on websites, these are powered by authentication APIs. Instead of creating a new username and password, the site uses APIs to verify your identity via Google or Facebook. In this case, the API call is requesting an action rather than simple information – and in doing so, they reduce their security burden.
Payment processing
CRM integration
AI integration
AI features are more popular than ever, and many rely on integrations with third-party AI tools. Customer service chatbots often integrate with LLMS like ChatGPT or Claude to generate conversational responses to customer inquiries – and many business apps use these APIs to build tools that can respond to natural language requests.
However, not all APIs are public APIs that connect apps to third-party services. Many businesses build internal APIs to create a microservices architecture, so business tools operate separately but communicate with each other within a single application.
For example, Netflix relies on a microservices architecture that combines hundreds of smaller services to process customer requests. What may seem like a seamless experience from the customer side actually relies on many APIs that coordinate each service. This helps Netflix manage global delivery and stay available while updating services.
(Most microservice architectures aren’t nearly this complex, and instead integrate a handful of services rather than hundreds.)

How APIs can help – and hinder – your app’s security and performance
Why APIs are becoming essential for high-performing software
Today, APIs are the backbone of software development – Postman’s State of the API survey found that 74% of developers prioritize them when building apps. When you use APIs to integrate with third-party software, you can add complex functionality without the high cost of building everything in-house.
They also improve efficiency and flexibility internally, which is why microservices architectures are a growing trend for managing complex business applications. When APIs connect internal tools, teams can optimize and scale them selectively without affecting other processes. This is especially important in industries like healthcare, where downtime across an entire system isn’t an option.
Finally, APIs can help automate workflows, since data in one app can be transferred to another without manual data entry. For many businesses, that can save hours of unnecessary work and reduce human error at the same time.
How well-managed APIs improve security
APIs can control and secure data flows, which is essential for compliance with security protocols like SOC 2 and ISO 27001. Since they expose only the data required for a particular function, they also reduce the risk of over-sharing sensitive information.
- Authentication and authorization: Authentication mechanisms like API keys and OAuth ensure only authorized users or applications can access data, and limit data access to only what’s necessary. They can also check user consent status before processing requests, verifying permissions in real time.
- Encryption: APIs typically encrypt data in transit, protecting it from interception or tampering by malicious actors. When they’re used internally, they reduce the risk of data exposure that comes with sharing data manually via email or spreadsheets.
- Rate limiting and throttling: By limiting the number of requests a client can make within a certain timeframe, APIs can prevent abuse, such as brute-force attacks or DDoS (Distributed Denial of Service) attacks.
- Input validation: Well-designed APIs validate and sanitize inputs, meaning they check user-provided data before it’s processed. This prevents vulnerabilities like SQL injection attacks, which rely on malicious code inserted into an entry field.
API gateways and management tools can also log all requests and responses for a clear audit trail of who accessed what data and when. These security features should be built in carefully to keep APIs safe without introducing too much processing overhead.

How APIs can create security risk and performance issues
APIs need to be built and managed with both security and performance in mind. When they’re hastily developed or left unchecked, they can lead to a number of problems that impact security and performance.
Security vulnerabilities
In 2024, Akamai found that 29% of web attacks targeted APIs. Since they’re designed to be gateways for data, APIs that lack security features can risk exposing that data. Attackers can also take advantage of APIs with DDoS attacks that overwhelm servers, or leverage their output for malicious purposes.
Performance issues
Tech debt
If you rely on third-party integrations, you’ll also need to keep on top of updates. Applications like Stripe and PayPal often update APIs to improve security and performance, but that also means you’ll need to update your own software in response. Left unchecked, these integrations can accumulate tech debt that degrade performance and create security risk over time.
Shadow APIs
Choosing the right third-party APIs for your business
Reliability & Performance
What’s the API’s uptime guarantee? How does the provider handle maintenance? Does the API have enough capacity to handle your peak usage?
Security and compliance
Does the API provider follow industry security standards you need to comply with? What authentication methods are supported? How is sensitive data stored?
Documentation and support
Is the API well-documented with clear examples? What technical support can you expect, and how responsive is the provider?
Scalability and cost structure
If you pay per API key, how does pricing scale with usage? What happens if you exceed rate limits?
Best practices for maintaining secure, high-performing APIs
The first step to maintaining secure APIs is a proper inventory of the APIs you use or have built into your software. If you don’t know where to begin, our Application Health Assessment can give you full visibility into your entire tech stack, including any APIs creating security or performance issues.
From there, you’ll be much better positioned to fix APIs and improve how they’re managed. This includes updates, monitoring tools, and documentation systems.
API updates
Monitoring tools
Documentation
Clear documentation helps developers understand how to properly use an API – so your integrations aren’t dependent on the developer who built them. When you’re evaluating third-party APIs, the quality of their documentation is often a pretty reliable indicator of their support quality.
Developers should also be trained on security and coding practices – and understand the importance of involving IT and security teams in API development. Periodic assessments from specialized security and development partners can help spot issues your team might otherwise miss.
How custom software can make APIs work for your business
If you’re looking to build and maintain secure, efficient APIs, custom software development can help at any stage of the process. At Vertical Motion, our development team has extensive experience designing purpose-built APIs and integrating software with third-party apps to improve efficiency, break down data silos, and improve the customer experience.
We also understand that API integrations are investments in your success – and like any business relationship, they require due diligence, ongoing maintenance, and strategic planning. That’s why we offer long-term support for continuous testing and monitoring, to ensure your APIs truly support your business goals, now and in the future. Get in touch to learn more about how we can help.
Vertical Motion is a trusted Canadian software development and entrepreneur assistance company that has supported the global efforts of startups, non-profits, B2B, and B2C businesses since 2006. With headquarters in Calgary and Kelowna, and team members coast to coast, Vertical Motion is recognized as an award-winning leader in the technology industry. Our team of executive advisors, project managers, software developers, business analysts, marketing specialists, and graphic designers have extensive experience in several industries including — Energy, Finance, Blockchain, Real Estate, Health Care, Clean Technology, Clothing & Apparel, Sports & Recreation, Software as a Service (SaaS), and Augmented & Virtual Reality (AR/VR).
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