How Much Does API Integration Cost?

APIs play an important role in both web application and business development. According to the Cloud Elements report, which includes insights from API industry experts and API enthusiasts, 60% of people surveyed said API integration is critical to their business strategy. Developers strive to use APIs for the enhancement of created software.

Application Programming Interface (API) connects web services with servers, enabling services to interact with each other, exchange data, and get access to new functions. In fact, API is a mediator between mobile or web applications – it provides solutions implemented in one service and an environment for creating a new application using these solutions. 

Many apps we access daily use APIs: YouTube, PayPal, Yahoo Finance, Google Pay, etc. An example is the social sign-in feature when you sign up for a specific application using your social media account. This becomes possible with a corresponding social media network API.

Integrating an application programming interface is an effective alternative to developing the same feature from scratch. How much does API integration cost for your business? What tips exist to reduce costs? What skills should API developers have? These and other important issues are explored in this article. 

Benefits Of API Integration

Programmers prefer integrating third-party APIs over developing ones from scratch for purpose. As the Slashdata survey claims, 69% of API developers use third-party application programming interfaces. Integration of ready-to-use solutions provides developers with a number of important advantages.

Increased Performance  

Development process optimization is crucial for speeding up and simplifying developers’ tasks. 3rd-party API integration enables faster development and saves valuable time by allowing different software to rearrange interactions to meet your specific business needs. 

Cost-efficiency 

Software creation is expensive. The cost of app development depends on various factors that include the technologies used, the developer’s skill level, and project complexity. 3rd-party APIs usage helps you reduce development costs since developers spend less time and effort on it. So they use ready-made solutions instead of trying to build them from scratch. 

Improved security 

Trustworthy APIs have relevant security measures that increase the protection level of an application from any external and internal threats. It is especially important when integrating payment gateways. Security protocols in APIs typically guarantee real-time protection and fight existing vulnerabilities. 

Automation of tasks 

The API integration contributes to streamlining and automation of various processes, and the connection between the customer-side and server-side is one of them. With the help of APIs, it is possible to automate manual processes like, for example, filling in data on a website – APIs enable faster information input, saving time for developers. 

Additionally, for even more complex automation needs, consider leveraging robotic process automation services (RPA) alongside API integration. RPA can automate tasks that involve manipulating data across different applications.

Functionality of other Software 

A straightforward app can be enhanced and modified by additional functionality provided by API integration. For example, this would enable your customers to use integrated digital processors, search engines, and payment services right in your software. As a result, your software becomes an application with comprehensive functionality, so users don’t need to use third-party apps. 

Enhanced customer experience 

The last but not least advantage on our list is a customer experience that can be taken to a new level. API integration makes it possible to improve customer satisfaction by providing new services and data to them. You can analyze the demands and expectations of customers and easily integrate new functionality required for them within the shortest period possible. 

Required skills for API Developers

The next point you can focus on is the skill level of API developers. There are some hard skills any API developers should get acquainted with to integrate APIs or even build them from scratch properly.

API Design

Learning API design techniques helps developers improve their skills and expand capabilities. The knowledge of API design enables developers to build micro-servers, apps, and tools across different platforms to ensure connectivity. API developers can use API design techniques to connect smartphone operating systems like iOS and Android to the media software in a connected car, for example. 

Strong Knowledge Of Specific Programming Languages 

Working with APIs requires understanding at least one backend programming language to connect applications. For example, at PLANEKS, we use Python as the core backend language for software development as well as Flask and FastAPI for custom API development or integration of third-party APIs. When hiring developers to integrate your API, make sure they have expertise in using the same technologies you need.

Front-End Development

Although API development is more about backend development, developers should have skills to understand how the front-end interacts with the backend, contributing to figuring out the API integration or development process. Full-stack developers, who can build both frontend and backend, can faster integrate an API and get insights into program compatibilities. At PLANEKS, front-end tools in use include Vue.js, React, and HTML5/CSS3. 

SOA Knowledge

SOA stands for service-oriented architecture, and this is a popular modular approach to software development based on using distributed and loose coupling reusable components that help integrate different apps with high flexibility. According to a survey published by Statista, 48.7% of API developers consider microservices, a service-oriented architecture pattern, the most exciting technology they work with. SOA skills allow developers to provide server compatibility with various services. Simply put, API developers skilled in SOA can build back-end systems for numerous clients who have different needs. 

Database Management Systems

Finally, there is appropriate knowledge API developers should use to integrate APIs, such as database management systems, for example, PostgreSQL (a database that allows developers to test compatibility and configure servers), REST (Representational State Transfer is a tool to test compatibility with web-based services and software architectural style), JSON (JavaScript Object Notation is a data interchange format used for parsing and also testing API compatibility), etc.

Everyone who plans to deal with APIs integration wants to know how the cost is formed and what impacts it. That is why we have prepared 3 primary factors for you to consider. 

Functionality

How complex the functionality of the product being created and how many 3rd-party APIs we need to integrate to implement the required task quickly – these factors directly impact the final cost. It is evident that developers need to spend more time if your software requires rich functionality, so API integration costs will grow. 

Team location

The final cost of API integration is closely linked to the region where you hire developers. Finding developers in Eastern Europe is a more profitable option than hiring them in North America. Hourly rates may vary depending on the company’s size, staff skill level, and areas of expertise.

• North America. The average hourly rate of API developers in Canada and the USA is $60-130. The cost depends on the level of the developer (junior, middle, or senior).
• Latin America. Here the rate of API developers will vary between $25 and 50 per hour.
• Asia. Asian countries provide API developer services at $20-40 per hour.
• Australia & New Zealand. This region provides the highest range where senior API developer services cost $140 per hour, while junior developers’ rates are $50-80. 
• Western Europe. The hourly rate of developers in this region is about $70-90.
• Eastern Europe. The rates in the specified region vary between the $35-70 range. 

The PLANEKS company is located in Ukraine (right in Eastern Europe). Ukraine is famous for its advantageous conditions to collaborate with local developers on an outsourcing basis.

Subscription costs

Depending on the service provider, APIs may require subscription costs. Some APIs may have subscription plans, and developers can select the one appropriate for your business. For example, Watson NLU (Natural Language Understanding), a freemium API, starts for free for the first 30K items in the Lite pricing plan, while a Standard plan will charge USD 0,003 per item. So this also may change the integration costs.

How To Calculate API Integration Cost

When calculating the cost of API integration, it is essential to consider factors like average hourly rate, the complexity of required functionality, subscription cost, etc. If developers integrate third-party APIs, the cost may vary from $1000 to 10000. 

Furthermore, the final cost of API integration and software development depends on the type of contract you choose.

Fixed Monthly Price	Hourly Engagement
You should have a budget in mind when you hire a dedicated API developer or a team. You can lock in their service fees on a monthly basis, ensuring that you stay within your budget. If you plan on being involved for a long time, have a vast and complex scope of work, and require a fully devoted staff to your project, this is the ideal option.	At PLANEKS, we may provide the type of cooperation when you plan to hire API developers for an unspecified period, you don’t have precise requirements, and time frames are not limited. So you pay for the number of services provided. This model suits better projects with changing scope.

Examples

Let’s ‌look at several examples of the most popular APIs used in many applications. Also, we will show some pricing plans for these APIs. 

Google Maps API

Google Maps API is used to display maps on mobile and desktop devices. It shows the information on the route and transmits real-time data. Maps from Google are used for geolocation, and Google Maps API is always available in on-demand apps like food delivery apps or taxi apps, etc.

The cost of Google Maps API is $0,50 per 1,000 requests. The First 2,500 requests are free. However, pricing can differ depending on what type of API you need – static maps, dynamic maps, or street view. 

Amazon S3

It is essential to provide users with reliable storage and hosting solutions that will be scalable for business. That is what Amazon S3 API does – it allows third-party users to store files in your storage bucket. Amazon S3 makes it possible to store data in large volumes and get quick access to them. 

Amazon S3 API provides a free tier for a start with limited capacity for 12 months. However, a plan can be selected individually, depending on the software type. 

Payment Gateway API

Your software will probably process payments, so payment gateway integration is a must-have. Mainly, payment gateways cover payment systems like Visa and MasterCard, and their main goal is to secure payments and transactions. There are plenty of reputable payment gateway providers, including Stripe, Braintree, PayPal, and WePay. 

So payment gateway API integration cost will depend on pricing plans. For example, Stripe charges customers who spend less than one million per year a fee of 2.9% + $0.30 per payment in the US. 

Booking.com API

Booking.com is a hotel and apartment booking software that provides a hotel booking API, and your users can retrieve data from the Booking.com website and see room availability, prices, etc. 

Interestingly, Booking.com doesn’t require any API fees, but its API is available for Connectivity Partners only. To become a partner, you submit your details, confirm PCI & PII compliance, and provide the required documents to get approval for using the Booking.com API. 

Facebook Messenger API

Sending and receiving messages in your application may be an essential feature. So integrating Facebook Messenger API will provide your users with an opportunity to communicate and create chats. Moreover, this API enables the creation of chatbots that can interact with your users independently. The Facebook Messenger API is available for free. 

Tips To Save Costs When Integrating APIs

Apart from the cost-effectiveness of using third-party APIs compared to developing your API from scratch, you can go further and reduce the cost of API integration using specific methods.

Offshoring 

Offshoring means the entire relocation of business registration and processes to another country. Therefore, you can do your business in the territory of another country with lower overhead costs. This provides the opportunity to offer better rates for your clients. 

Outsourcing

You can outsource API integration to a company based in another city or country and work remotely with them. Outsourcing implies the delegation of some tasks to companies outside of your own. However, this is also quite an attractive and popular way to reduce development costs. Lower rates, however, do not necessarily mean a lower quality level.

For example, in Ukraine, there are many skilled API developers who can work with software of any complexity. PLANEKS is a reliable development company with good backend and frontend development expertise.

How much does API integration cost?

We may assert that this article can provide a reasonably detailed answer to the question “How much does API integration cost?” Personally, if you need a detailed estimate of your project. PLANEKS will always be glad to assist you.

Our clients are our responsibility! So don’t hesitate to hire PLANEKS for API integration – we will do our best!