What is an Application Programming Interface (API)?
An API (Application Programming Interface) is a set of rules and tools that allows different
software applications to talk to each other.
What is an API?
An API (Application Programming Interface) is like a messenger that helps two apps or
software talk to each other.
🎯 Imagine this Example:
You are using a mobile app to book a train ticket:
1. You enter your journey details in the app.
2. The app sends your request to the Indian Railways database through an API.
3. The API brings back the train info — available seats, time, fare.
4. The app shows the result to you.
🟰 The API is the middleman doing the talking between your app and the railway database.
🔄 Another Simple Example:
You are using a weather app to check tomorrow’s weather.
That app doesn’t make the weather data.
It uses a Weather API to get data from a weather website.
The API brings back the information, and the app shows it to you.
🧠 Think of API as:
A bridge between two apps.
A translator helping them understand each other.
A helper that carries your request and brings the answer.
What is Setu?
Setu is a platform that offers ready-made APIs so businesses (like apps or banks) can plug in
financial services easily — like UPI, bill payments, eKYC, and more — without building
everything from scratch.
🔧 How Setu API Works (Step-by-step)
Let’s use an example to understand it:
🏦 Example: A mobile app wants to offer bill payment to users.
Step 1: App Integrates Setu API
The app connects to Setu's BBPS API (BBPS = Bharat Bill Payment System).
The app gets developer access keys and documentation from Setu.
Step 2: User Opens the App
A user enters details like their electricity bill consumer number.
Step 3: API Request Sent
The app sends a request to Setu’s API with the consumer details.
Setu API connects to the BBPS backend system to fetch the bill.
Step 4: Bill Info is Returned
Setu API responds with bill amount, due date, and biller name.
The app shows this info to the user.
Step 5: Payment Initiated
The user pays via UPI or other options.
The app sends a payment request through Setu’s API.
Step 6: Transaction Complete
Setu processes the payment and returns a success or failure message.
The user sees a confirmation in the app.
🧠 What Setu Handles Behind-the-Scenes:
Secure data exchange (using encryption).
Works with NPCI, banks, billers, and other financial systems.
Ensures compliance (e.g., RBI rules).
Provides dashboards, logs, and monitoring tools for businesses.
🔐 Security:
Uses API tokens and authentication for safe communication.
Follows strict data privacy and user consent policies.
