From the latest definition by Oracle, Interface is:

There are a number of situations in software engineering when it is important for disparate groups of programmers to agree to a "contract" that spells out how their software interacts. Each group should be able to write their code without any knowledge of how the other group's code is written. Generally speaking, interfaces are such contracts.

For example, imagine a futuristic society where computer-controlled robotic cars transport passengers through city streets without a human operator. Automobile manufacturers write software (Java, of course) that operates the automobile—stop, start, accelerate, turn left, and so forth. Another industrial group, electronic guidance instrument manufacturers, make computer systems that receive GPS (Global Positioning System) position data and wireless transmission of traffic conditions and use that information to drive the car.

The auto manufacturers must publish an industry-standard interface that spells out in detail what methods can be invoked to make the car move (any car, from any manufacturer). The guidance manufacturers can then write software that invokes the methods described in the interface to command the car. Neither industrial group needs to know how the other group's software is implemented. In fact, each group considers its software highly proprietary and reserves the right to modify it at any time, as long as it continues to adhere to the published interface.

[...] An interface is a reference type, similar to a class, that can contain only constants, method signatures, default methods, static methods, and nested types. Method bodies exist only for default methods and static methods. Interfaces cannot be instantiated—they can only be implemented by classes or extended by other interfaces.

The most popular usage of interfaces is as APIs (Application Programming Interface) which are common in commercial software products. Typically, a company sells a software package that contains complex methods that another company wants to use in its own software product.

An example could be a package of digital image processing methods that are sold to companies making end-user graphics programs.

The image processing company writes its classes to implement an interface, which it makes public to its customers. The graphics company then invokes the image processing methods using the signatures and return types defined in the interface. While the image processing company's API is made public (to its customers), its implementation of the API is kept as a closely guarded secret—in fact, it may revise the implementation at a later date as long as it continues to implement the original interface that its customers have relied on.

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