Native integration vs. custom API integration: What works best

Companies that use APIs are 24% more likely to succeed, as integrations boost customer satisfaction by 20% and reduce operational costs by 15%. It's all about making your business run efficiently and giving your team their time. When you're ready to take this step, here's what you'll probably wonder: native integration vs custom API?

We will help you understand different types of APIs without getting lost in technical jargon. At the end of this guide, you’ll find it easier to choose between custom API integration and native integration for your business.

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What is a native integration?

A native API (Application Programming Interface) refers to a set of functions and protocols provided by the underlying operating system or development platform that allows software developers to interact directly with system components, hardware, or built-in functions of that platform. These APIs are designed specifically for that system, making them highly optimized and efficient for use within its environment.

Native API integration examples include:

• Native APIs in mobile development: iOS developers use Apple’s native APIs like UIKit or Core Data to create apps tailored for iOS devices, while Android developers use APIs provided by the Android SDK.
• Native APIs in desktop environments: Windows applications might use the Windows API (formerly known as WinAPI) for tasks like file management, user interface design, and network communication.
• Native APIs in web development: Browsers provide native Web APIs such as fetch, WebSocket, and Geolocation that allow developers to perform network requests, handle data streams, and access location data directly in the browser.

The core features are standardized data exchange protocols and predefined connection points that enable seamless system API communication. What sets these features apart from regular API alternatives — they're designed to work within established software ecosystems, making API integration process smooth and straightforward.

Native integration benefits

Native integration goes far beyond basic connectivity. Modern native integrations include automated data synchronization capabilities, pre-configured API gateway integration, and error-handling mechanisms. Using native APIs helps developers create applications that perform well and provide better integration with the system’s features, but it also means that the code may need to be adapted or rewritten when porting to different platforms.

Here are other advantages of native API integration solutions:

• Pre-built connections: Native API integrations use a standardized data mapping and can be utilized right after the installation. 

• Vendor support: Native integration solutions provide direct technical support from the software providers. This means regular updates and maintenance are handled automatically by the vendor's team. 

• Quick implementation: One of the most attractive aspects of native integration is its rapid deployment capability. While custom API development takes weeks or months, native integrations can be set up within hours with minimal technical expertise required. 

• Cost-effective solutions: When considering integration costs, native integrations offer significant advantages as they're typically included in existing software subscriptions. This integration benefit means lower upfront costs compared to custom API alternatives. 

• Reliable performance: The reliability of native integration is demonstrated through extensive testing across thousands of users and consistent updates. When evaluating API integration platforms, this proven reliability becomes a crucial factor. 

These advantages explain why native integrations often serve as the foundation for many companies' API integration architecture. Still, they come with limitations.

What is native integration’s disadvantage?

While native integrations offer many benefits, it's important to understand their constraints when planning your API integration architecture. Let's examine the key limitations that might impact your choice between native integration vs API custom integration:

• Limited customization capabilities. 

One of the main drawbacks of native integration is its fixed functionality and rigid structure. When using these API integration solutions, you cannot modify data flows or create custom processes. For example, when using Mailchimp native integration with a CRM, you're restricted to their predetermined synchronization rules without the ability to add custom fields or modify data mapping.

• Vendor dependency issues.

Another significant limitation of native integration solutions is their complete reliance on vendor updates and feature releases. Unlike custom API integration services, you have no control over the development roadmap. This means waiting months for vendors to add new features or fix issues, as seen with platforms like Salesforce, where users must wait for scheduled releases to access new integration capabilities.

These limitations push companies to explore custom API integration options, especially as their needs grow more complex.

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Custom API integration

Before diving into solutions, let's clarify what we mean by custom API integration. Custom or bespoke API integration is a tailored approach to connecting different software systems, where developers build unique connections that precisely match a business's specific needs and workflows. 

Unlike pre-built solutions, custom-developed integrations give developers full control over functionality, connections, and data sharing. Let’s review the types of custom API integrations.

System API vs process API

When exploring different types of APIs, it's important to understand how they function within your business operations. Here's how they break down functionally:

• System APIs.

These are the foundation of API integration development, handling core business operations and fundamental data processing. System APIs manage essential business functions like database operations and security protocols. For example, when your inventory system automatically communicates with your warehouse management software, that's a system API in action.

• Process APIs.

In the world of API integration solutions, process APIs serve as orchestrators, coordinating complex workflows across multiple platforms. They implement business rules and manage multi-step processes. A practical example is a custom order fulfillment process that coordinates across your e-commerce platform, inventory system, and shipping service.

With this breakdown, your task is to dig into the core of your business needs to determine whether you need a process API vs system API. However, this isn’t the only way to categorize them. Now, let's examine APIs based on their accessibility and scope.

Types of API by access level 

To adopt the API integration best practices and understand different types of API integrations, you need to know who can access and use them. Here's how APIs are categorized by their scope of use:

• Public APIs: Also called external APIs, these open interfaces allow any developer to integrate with your services. They're crucial for cloud API integration and often part of API as a service offering.
• Partner APIs: These specialized custom API integration services are designed for secure B2B collaboration. When evaluating API integration companies, partner APIs offer controlled access and enhanced security for specific business relationships.
• Internal APIs: Private APIs are essential for internal systems functioning. For example, they can connect internal systems like HR and accounting software.
• Composite APIs: These advanced solutions combine multiple APIs for complex operations. When considering how to develop an API strategy, composite APIs offer efficient ways to bundle related services, reducing the integration cost and boosting integration benefits.
• Experience APIs (xAPI): xAPIs enable learning technology systems to collect and exchange data about learner experiences, with the goal of improving learning through integrated data and activity tracking in a central Learning Record Store.

Whether you're looking to build an API from scratch or choose between various API gateway integration types, knowing these types of API integrations helps optimize your integration approach while managing both costs and benefits.

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Custom API building benefits and limitations

Now that you know how API integration works and what types you have to choose from, let’s explore their pros and cons. 

Pros of bespoke API integration

One of the key benefits of API customization is the ability to build API solutions that match your requirements. For example, when integrating your proprietary software with cloud API integration systems, you can create bespoke API integration workflows that adapt as your system API needs evolve.

Custom API integrations enable complex API data integration and sophisticated API implementation. For instance, when implementing an external API connection, you can create custom business logic that standard direct API integration cannot match.

Custom APIs scale with your business growth, whether you need integrated API solutions for thousands or millions of transactions. An example of API integration architecture scaling is when your system handles increasing API data volumes across multiple cloud API integration points without performance issues.

Cons of customized API development

When you plan API integration development, you might face several challenges. Here's what you should consider when choosing between native integration vs API custom solutions:

Resource-intensive development. Understanding how much does it cost to build an API is crucial — custom solutions require significant investment in both time and financial resources. 

Example:

• API building costs often start at $15,000+ for complex integrations.
• The API integration process typically extends from 1-2 weeks for simple ones and from 3 months for complex solutions.
• API integration companies charge premium rates for customized API development.

Advanced API integration solutions. Custom solutions enable complex API data integration and sophisticated API implementation. For instance, when implementing external API connections across your digital integration platform, you can create custom business logic that standard direct API integration cannot match.

Maintenance overhead. Custom API implementations require continuous attention and resources to maintain optimal performance. 

Example:

• API data integration needs continuous monitoring.
• Integrated API solutions demand regular updates.
• The digital integration platform requires dedicated support teams.
• Unlike basic API alternatives, custom solutions need constant maintenance.

When deciding between native integration meaning simple plug-and-play solutions versus working with an API development company, these limitations often influence whether businesses choose bespoke API integration or stick with standard solutions.

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What’s the difference between native and custom APIs?

When choosing between integration solutions and suitable API connectivity types, understanding key differences helps you make the right business choice. Let's examine each important aspect:

• Time to launch.

Native APIs provide a quick integration setup that can be activated within hours or even minutes. It's like plugging in a new device — connect and use. With custom APIs, the development timeline typically spans weeks or months due to coding, testing, and optimization phases.

• Freedom to change.

Native APIs include standard features and built-in integration options — what you see is what you get. Think of HubSpot's default connections with preset syncing options. Custom APIs offer bespoke solutions where everything can be tailored, from data fields to workflow rules.

• Technical skills.

With native APIs, you rarely need programming knowledge — most integration setup involves clicking through wizards and selecting options. Custom APIs require experienced integration developers who can build and maintain custom solutions over time.

• Money investment.

Native APIs typically come within your existing software package, making them budget-friendly for basic needs. Custom APIs need significant upfront development costs plus ongoing investment for maintenance.

• Upkeep work.

The software provider handles all integration maintenance for native APIs — updates and fixes happen automatically. Custom APIs need dedicated technical support teams to monitor, update, and fix issues.

• Business fit.

Native APIs handle standard processes like basic data synchronization or file sharing. Custom APIs excel at complex, unique needs such as industry-specific workflow automation or specialized data processing.

• Data flow options.

Native APIs have fixed integration patterns — you can only connect data in predetermined ways. Custom APIs enable flexible data relationships where any information can be connected and transformed as needed.

• Room to grow.

Native APIs are limited by the provider's integration capabilities. Custom APIs can expand infinitely based on your needs, though this requires additional development resources and infrastructure.

The choice between native and custom APIs depends on your specific needs, technical team, budget, and growth plans. While native APIs offer quick, affordable solutions for standard needs, custom APIs provide unlimited potential for businesses with unique requirements.

Native and custom APIs: Finding the right mix

While native APIs excel at standard processes like basic data synchronization and common platform connections, offering quick implementation benefits and cost savings, custom APIs shine in scenarios requiring unique workflow automation and complex system integration. However, using the best of both worlds is sometimes the best strategy. When does hybrid integration make sense, and what are such API integration examples?

A combined approach proves most valuable when businesses need both standardization and specialization. For example, a healthcare provider might use native APIs for standard appointment scheduling and billing, while implementing custom APIs for patient data analysis and specialized treatment tracking. 

Another example is eCommerce platforms. Native APIs handle standard payment processing and basic inventory updates, while custom APIs manage pricing algorithms and unique loyalty programs. Together they create a seamless customer experience and keep your unique competitive advantages at bay.

Manufacturing operations also use native APIs to connect standard supplier and shipping systems, and let custom APIs manage unique production workflows and quality control. Last but not least, financial businesses benefit from native APIs managing standard bank transfers, and custom APIs can handle risk assessment and fraud detection. Combined, they boost security capabilities and business intelligence. And speed things up, which always matters!

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Checklist to choose between native and custom API integration solutions

When choosing between native integration and custom API integration, several key factors will determine which path makes the most sense for your business. The right choice can significantly impact your integration benefits, operational efficiency, and bottom line. Let's examine the most important criteria to help you make an informed decision that aligns with your business goals. To choose right, you should answer some questions. 

1. Business size and scale. Are you a growing startup, a mid-sized company, or an established enterprise?

• Startups and small businesses often benefit from native integration solutions due to their lower upfront costs and quick implementation. You'll get standard functionality without straining your resources.
• Mid-sized companies might need a mix of both, starting with native solutions and gradually adding custom API integrations as specific needs arise.
• Large enterprises typically require bespoke API integration to handle complex workflows and maintain competitive advantages through unique processes.

2. Technical resources. Do you have an in-house development team or rely on external support?

• Companies without technical teams find native integration more manageable as it requires minimal technical expertise.
• Organizations with development capabilities can better handle custom API development, making it easier to maintain and modify integrations as needed.
• Businesses working with an API integration company can tackle more complex projects regardless of internal capabilities.

3. Budget constraints. What's your investment capacity for integration solutions?

• Limited budgets align better with native integration as it typically comes included with existing software subscriptions.
• Flexible budgets allow for custom API integration services that deliver precisely what you need.
• Consider both initial integration cost and long-term maintenance expenses – custom solutions require ongoing investment.

4. Time requirements. How quickly do you need the integration up and running?

• Need immediate results? Native integration offers almost instant deployment.
• Can wait for perfect fit? Custom API integration takes longer but delivers exactly what you need.
• Consider your business cycles and peak seasons when planning implementation timelines.

5. Process complexity. How unique are your business processes?

• Standard workflows work well with native integration, offering proven solutions for common needs.
• Complex or unique processes require custom API integrations to maintain efficiency.
• Consider whether you need system API vs process API solutions based on your workflow complexity.

6. Growth projections. Where do you see your business in the next 2-5 years?

• Stable businesses with standard growth can rely on native integration solutions.
• Companies expecting significant expansion or changes should consider custom API integration for better scalability.
• Think about future cloud API integration needs as your business evolves.

7. Security requirements. What level of data protection do you need?

• Basic security needs can be met with native integration protocols.
• Stringent security requirements often demand custom API integration with specialized protection measures.
• Regulated industries typically need custom solutions to ensure compliance.

Remember, you're not limited to choosing just one approach. Many successful businesses implement a hybrid strategy, using native integration for standard processes while leveraging custom API integration for specialized needs. The key is finding the right balance for your specific situation. However, no matter the size, scaling plans, and budget, you might find integrations challenging. What to do if you need help?

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API integration expertise at your service

At COAX, we've seen it all when it comes to custom API development. From helping travel companies streamline their booking systems to implementing secure payment gateways, we know that each project has its unique challenges. We've handled robust custom travel API integration for platforms and OTAs, connecting them with global booking systems, real-time pricing engines, and inventory management tools. 

If you’re in e-commerce, our payment gateway API integration services take you out of the trial-and-error game. Whether it's integrating Stripe, PayPal, or building custom payment solutions, we ensure secure, seamless transactions. We seamlessly implement multi-currency support, fraud detection systems, and ensure secure encryptions so your transactions are safe no matter your market and size.

We don't just push one solution. Sometimes you need native integration, sometimes custom — we help you choose what works best. Within our software integration service, our team has delivered successful projects ranging from simple API connections to complex multi-system architectures. 

Want to know if you're making the right choice? Drop us a line — we love talking about integration challenges almost as much as we enjoy solving them!

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FAQ

What does native integration mean?

Native integration refers to pre-built connections between software applications that come ready to use "out of the box" without extra setup or coding.

What are some alternatives to API?

Common alternatives include direct database connections, file sharing and transfers, webhooks, EDI (Electronic Data Interchange), and native integration. Each option suits different needs, with native integration often being the simplest alternative.

How much does an API integration cost?

The cost varies significantly based on complexity. Native integration is usually included in software subscriptions. Simple custom API integration typically costs between $15,000-20,000, while complex custom solutions can range from $20,000. Ongoing maintenance usually costs about 15-20% of the initial development cost annually.

What are the key benefits of an API?

APIs offer numerous advantages including automated data exchange, improved efficiency, better user experience, enhanced functionality, scalability, access to external services, and real-time data updates. These benefits make APIs essential for modern business operations and digital transformation.

What is the best API integration platform?

Popular platforms include MuleSoft, Zapier, Dell Boomi, Azure Integration Services, and AWS API Gateway. The best choice depends on your specific needs, technical expertise, and budget. Each platform offers different features and capabilities suited to various business requirements to connect different APIs for your workflows.

What is the external API meaning?

An external API (also called public API) is an interface that allows different software systems to communicate over the Internet. It provides a way for outside systems to request and receive data or services from your application while maintaining security and control.