API integration is a cornerstone of innovation in the FinTech sector, enabling seamless connectivity between disparate financial systems, enhancing service delivery, and fostering the development of new financial products. This review explores the challenges and best practices associated with API integration in FinTech, emphasizing the importance of effective strategies for overcoming integration obstacles and achieving successful outcomes. APIs (Application Programming Interfaces) facilitate the exchange of data and functionality between financial applications, such as payment systems, banking platforms, and financial data aggregators. However, integrating these APIs presents several challenges, including compatibility issues, security concerns, and regulatory compliance. Ensuring that APIs are compatible with various systems and standards is essential for smooth integration. Security is another critical concern, as financial data is highly sensitive and requires robust protection against breaches and unauthorized access. Compliance with financial regulations, such as GDPR and PSD2, adds an additional layer of complexity to API integration. To address these challenges, best practices in API integration include adopting standardized protocols and frameworks to enhance compatibility and interoperability. Implementing comprehensive security measures, such as encryption, authentication, and authorization, is crucial to safeguarding data and maintaining trust. Additionally, establishing clear documentation and version control practices helps ensure that APIs are easy to use and integrate while accommodating future updates and changes. Effective API management also involves continuous monitoring and testing to identify and resolve issues promptly. Leveraging API management platforms can streamline the integration process by providing tools for monitoring performance, managing security, and facilitating communication between systems. Collaboration between development teams, IT departments, and business stakeholders is essential for aligning technical and business requirements and ensuring that integration goals are met. In conclusion, while API integration in FinTech presents various challenges, adhering to best practices and leveraging appropriate tools can facilitate successful integration. By addressing compatibility, security, and compliance issues, FinTech organizations can enhance their service offerings, drive innovation, and improve operational efficiency. Keywords: API Integration, Fintech, Compatibility, Security, Regulatory Compliance, Standardized Protocols, Encryption, Authentication, API Management, Performance Monitoring.