Webhooks and APIs are both communication mechanisms between software applications. APIs (Application Programming Interfaces), establish rules for data exchange, enabling various interactions between systems. They involve making requests and receiving responses through predefined methods. On the other hand, webhooks facilitate real-time data transmission by sending HTTP callbacks when specific events occur. They are triggered by events in the system, allowing instant notifications and actions. While APIs support diverse interactions, webhooks excel in delivering timely, event-driven updates between systems without constantly polling the API. As soon as updates are pushed to the server, the JSON payload is posted on the callback URL.