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Their uses cases are very similar but the prime difference between API and webhooks? And while they’re similar in what they can help you achieve – they’re not the same thing.Īs mentioned earlier, webhooks are just one of the ways that different applications use to communicate with each other, and another is through an application programming interface (API). You’ll often hear APIs and webhooks mentioned together. You can also use webhooks to send information about events to external databases or data warehouses like Amazon’s Redshift or Google Big Query for further analysis.For example, if a user changes their email address you can ensure that the change is reflected in your CRM as well. You can use webhooks to sync customer data in other applications.

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You can use a webhook to connect a payment gateway with your email marketing software so that a user gets an email whenever a payment bounces.And the fact that they’re so popular means that you’ll be able to integrate most of the web apps you currently use.įor example, connecting your email marketing software with other applications through a webhook can open up a lot of possibilities: Webhooks are an incredible tool that saves you a lot of work. Here’s an image that shows how this might work: You’d then be able to set up the Stripe integration to automatically transfer a user’s information over, each time payment is made. Let’s assume that both Stripe and the membership management software have webhook integrations. Using a webhook is one way to make this happen. That way anyone that pays through Stripe is automatically added as a member. If only Stripe and your membership software could communicate with one another. This of course, quickly becomes tedious as the rate of new members increase. Every time a customer pays you through a payment gateway like Stripe, you have to manually input their details into your membership management application. Now we understand what a webhook is and how it typically works, why should you use it? Why use webhooks Here’s an example of what a webhook URL looks like with the payload it’s carrying:

Only it’s more complicated than a phone number, because data about the event is sent to the webhook URL in either JSON or XML format. This exchange of data happens over the web through a “webhook URL.”Ī webhook URL is provided by the receiving application, and acts as a phone number that the other application can call when an event happens. Here’s a visual representation of what that looks like: The data is then sent over the web from the application where the event originally occurred, to the receiving application that handles the data. What a webhook does is notify you any time someone checks in, so you’d be able to run any processes that you had in your application once this event is triggered. You ideally want to be able to greet customers by name and offer a complimentary drink when they check in. It allows you to send real-time data from one application to another whenever a given event occurs.įor example, let’s say you’ve created an application using the Foursquare API that tracks when people check into your restaurant. Webhooks are one of a few ways web applications can communicate with each other.

While it’s clear webhooks are in demand, what exactly are they? What is a webhook? Data from Google trends shows how interest for webhooks has increased over the past five years. You’ve probably seen webhooks integrations in a few of your applications, and you’re wondering what they are and if you should be using them.Īnd it’s something to consider, as webhooks are growing in popularity.