Webhooks are a term that appears frequently when founders start working with software integrations and automation, but the concept is often unexplained or explained in terms that require technical background to understand. A basic grasp of what a webhook is and how it differs from an API is useful for anyone working with developers or evaluating how their business tools communicate.
A webhook is a mechanism that allows one application to automatically notify another when a specific event occurs, by sending a small package of data to a designated URL. Unlike an API, which requires the receiving application to actively request information, a webhook pushes information to the recipient as soon as the event happens. For example, when a payment is completed, a payment processor might send a webhook to an order management system to trigger fulfilment. Webhooks are the mechanism behind many real-time integrations.
Most founders encounter webhooks indirectly — through automation platforms that use them to receive notifications from applications and trigger subsequent steps in a workflow. Understanding that a webhook is essentially an automatic notification from one system to another helps demystify the concept when it appears in platform documentation or developer conversations. Our guide to webhooks and integrations explains the key concepts for non-technical UK founders.