Online payments: SDK vs API explained

Great online payments fit naturally into daily operations, offering the flexibility to grow and adapt as the business evolves. Deciding between APIs vs SDKs (Application Programming Interface vs Software Development Kit) can get technical, so our beginners' guide will break down the difference between SDKs and APIs, and offer insights into how each can support daily processes effectively. 

We’ll also provide guidance on how SDKs and APIs can help your business accept online payments seamlessly. For developers looking to accept online payments, check out our step-by-step guide to using our API and SDK. 

This guide will cover the following:

• What is an API and what does API stand for?
• When to use an API
• Types of APIs
• Dojo API
• What is an SDK and what does an SDK stand for?
• What is SDK used for?
• Types of SDKs
• Dojo SDK
• What is the difference between SDK and API
• Comparison table for API vs SDK
• What is an SDK vs API analogy?
• Online payments glossary
• How do SDKs and APIs work together?
• Tailored payment solutions by industry
• Deciding on a developer
• Choosing Dojo
• FAQs

What is an API integration and what does an API stand for?

APIs, or Application Programming Interfaces, allow different software systems to communicate with one another. Think of it as a bridge connecting two applications – the website or app and the payment provider’s platform. 

APIs offer more control and flexibility over how payments are processed on the site or app to accept online payments with ease.

When to use an API

APIs are ideal for businesses with in-house developers who want to build a custom solution from scratch. This might be useful when looking to tightly integrate payment processing (including online payments) with other systems, like inventory management or CRM tools.

Knowing when to choose between SDK vs API is key to streamlining operations.

Types of APIs

• Open APIs (Public APIs): Available to external developers and users, often with minimal restrictions.
• Internal APIs (Private APIs): Used within an organisation to integrate systems and services.
• Partner APIs: Shared externally with specific partners, allowing controlled access.
• Composite APIs: Combine multiple APIs into a single call to streamline processes.
• REST APIs: Follow REST principles and use HTTP for communication, often preferred for web services to take online payments.

Dojo API

Our Dojo API is designed to make communication between systems easy. It uses standard responses to indicate whether actions were successful or if any errors occurred. The API works with data in a format called JSON.

Stay updated on the latest developments by checking our changelog.

What is an SDK and what does SDK stand for?

An SDK, or Software Development Kit, is a collection of tools, libraries, and code samples that developers can use to build software more quickly. 

SDKs typically come with pre-built components, such as drop-in UIs for checkout, making them ideal for businesses that want faster integration without reinventing the wheel to take online payments.

Deciding between SDK vs API will depend on how much customisation and speed of deployment the business needs.

What is SDK used for?

SDKs are the go-to for a ready-made solution to integrate payments into an app or website without needing to build everything from the ground up. They simplify the process, allowing businesses to get up and running to accept online payments more quickly.

Types of SDKs 

• Platform SDKs: Provide tools to build applications for specific operating systems, like iOS or Android.
• Hardware SDKs: Used for developing software that interacts with specific hardware, such as printers or payment terminals.
• Game SDKs: Offer tools and libraries for building video games, including graphics, audio, and physics engines.
• Analytics SDKs: Enable developers to track user behaviour and gather data within apps.
• Advertising SDKs: Used to integrate ad services into applications for revenue generation.
• Payment SDKs: Simplify the integration of payment processing into apps or websites.

Dojo SDK

Dojo offers SDKs tailored to platforms like iOS and Android, making it easy to integrate payments into mobile apps or web experiences. For example, developers can set up the Dojo iOS SDK using CocoaPods or Swift Package Manager. 

When thinking about SDK vs API, SDKs often offer a faster way to integrate payments into an existing app.

These SDKs support payments from all major credit and debit cards, along with Apple Pay and Google Pay. Customers can save their card details for future use, and businesses can collect additional customer information, like email or billing address, during checkout to accept online payments. 

What is the difference between SDK and API

An API allows different software applications to communicate, while an SDK is a complete toolkit that provides everything needed to build applications for a specific platform. APIs act as bridges for interaction between programs, while SDKs often include APIs and additional resources, making development easier and quicker.

Compare and contrast: API vs SDK

What is an SDK vs API analogy? 

Think of APIs and SDKs like baking a cake. An API is the recipe – a set of instructions for accessing online applications or databases. Just as recipes are often freely available, software companies provide APIs for developers. If different recipes are mixed, it’s like combining APIs to add features to the app.

An SDK, on the other hand, is like a premade cake mix. It provides most of the ingredients, pre-measured and ready to use, saving time and effort. SDKs offer the tools needed to build an application in a specific language and platform, making development easier. Without APIs or SDKs, coding would start from scratch.

Online payments glossary

To help navigate some of the more technical terms mentioned in this guide, we've compiled a quick glossary to clarify key terms and concepts related to APIs, SDKs, and online payments.

• Endpoint: A specific URL where an API connects to a server to send or receive data.
• JSON (JavaScript Object Notation): A lightweight format for exchanging data between a client and a server, commonly used in APIs.
• REST (Representational State Transfer): A set of rules for creating APIs that use standard HTTP methods like GET and POST.
• HTTP request: A request from a client to a server, often used in APIs to get or send data.
• Webhooks: Automated notifications sent from one system to another, triggered by specific events, often used with APIs.
• Authentication tokens: Used in APIs to confirm that a user has permission to access certain resources.
• Library: A set of pre-written code that developers can use in their projects, often included in SDKs.
• Middleware: Software that helps manage communication between an operating system and applications.
• IDE (Integrated Development Environment): A software package with tools developers use to write and test code, often used with SDKs.

Explore our glossary to clear up and simplify common card payment jargon.

How do SDKs and APIs work together?

While APIs and SDKs serve different purposes, they often work in tandem. An API provides the rules and protocols for interacting with your backend system – like processing payments – while an SDK offers the development tools and libraries to build the front-end application. 

The SDK handles integration, allowing your app to make requests via the API without complex coding. Together, they streamline development for faster implementation and a more efficient user experience to accept online payments.

Tailored payment solutions by industry

Let's explore how SDKs and APIs can help businesses in three key industries – and how our payment solutions can fit seamlessly into your operations.

Omnichannel businesses

Managing online payments and in-person payments can be complex. With Dojo, payment providers are consolidated, offering a unified view of all transactions. Whether using an API for custom checkouts or an SDK for faster integration, our platform provides the flexibility needed to streamline operations, allowing more time to focus on business growth.

Leisure & entertainment

Managing ticket sales and concessions across multiple channels is simplified with Dojo. By integrating with existing ticketing systems via APIs or SDKs, everything is consolidated in one place – both in-person and online. 

This allows teams to focus on delivering a smooth event experience without worrying about payment delays or disruptions.

Restaurants & takeaways

Busy restaurants and takeaways need a payment solution that connects in-person and online transactions. Our platform provides a unified view of all payments, easily integrated into websites or apps. 

Deciding on a developer

For businesses seeking a pre-built solution that allows for quick implementation, SDKs are often the best fit. On the other hand, for those requiring more control over the payment process and with development resources available, APIs offer greater flexibility. In both cases, we at Dojo ensure that payment systems are reliable and secure with full support provided.