What is VPA?
A Virtual Payment Address (VPA) is a unique identifier for UPI (Unified Payments Interface) transactions. It serves as an address through which you can send and receive money in your bank account through UPI, similar to a postal address for sending and receiving physical mail.
You do not require a credit or debit card to make UPI payments. Instead, it would help if you had a VPA, a substitute for traditional bank account details like account number, IFSC code, Etc. During a UPI transaction, the payer enters the recipient’s VPA, and the payment is directly transferred to their bank account linked with the VPA.
VPAs are easy to create and can be customized to a user’s preference. They are typically in the format of “name@bankname” and users can choose a name followed by the name of their bank to create their VPA.
Why UPI is the Preferred Payment Method in India
Recently, the Unified Payment Interface (UPI) has revolutionized the payment landscape and established itself as the most popular mode of payment in India, surpassing cash and card-based transactions. This phenomenal growth in UPI transactions can be attributed to its several advantages, making it the preferred choice for users.
First and foremost, UPI offers a seamless payment experience, eliminating the need for lengthy procedures or multiple steps. Transactions can be completed in a jiffy, making the payment process hassle-free and convenient for users.
Moreover, UPI transactions are incredibly secure, providing robust security features like multi-factor authentication and encryption to protect sensitive information. Users can rest assured that their financial data is protected from fraudulent activities.
Furthermore, UPI offers diverse services, enabling users to pay bills, make e-commerce purchases, and transfer funds to other accounts. This versatility allows users to access multiple payment services from a single platform, making it incredibly convenient.
Another unique feature of UPI is the ability to make payments by scanning QR codes, ubiquitous in retail stores, departmental stores, and other establishments. This feature enhances accessibility and eliminates the need for cash or cards, making it an attractive payment option.
Lastly, UPI offers lucrative rewards like cashback, discounts, and other incentives for frequent usage. These reward programs encourage users to make more payments through UPI, making it a win-win situation for users and businesses.
How to create Virtual Payment Address: A Step-by-Step Guide
Creating a Virtual Payment Address (VPA) is a straightforward process that can be completed in simple steps. VPAs are unique identifiers used for UPI transactions that enable users to send and receive Money through UPI without sharing their traditional bank account details. Here’s a step-by-step guide on how to create a VPA:
Download a UPI-enabled app: To create a VPA, you need a UPI-enabled app, such as Paytm, PhonePe, Google Pay, or any other UPI app of your choice.
Link your bank account: Once you have downloaded the app, link your bank account to it. This can be done by entering your bank account details, such as account number, IFSC code, and other required information.
Create your VPA: After linking your bank account, you can create your VPA by selecting the ‘Create VPA’ option on the app. The VPA typically follows a standard format, consisting of your mobile number or name or email ID followed by the bank or third-party app’s name.
Customize your VPA: Most UPI apps allow you to customize your VPA per your preference. You can choose a name or phrase to make your VPA more personalized.
Verify your VPA: Once you have created it, verify it by sending a small amount of money to another UPI ID or bank account. This ensures that your VPA functions correctly and can be used for future transactions.
Creating a VPA is a simple process that can be completed in a few easy steps. Following the above steps, you can create your VPA and make UPI transactions quickly and easily.
Why VPA is a Secure and Convenient Payment Method
Using a Virtual Payment Address (VPA) to transfer money has numerous benefits, making it a preferred payment method. Here are some of the advantages of using VPA:
Convenient and hassle-free: With VPA, you can easily receive money without sharing complex bank account details such as your account number, IFSC code, and branch name. You only need to share your VPA with the sender to receive money in your bank account.
Fast and Instant: You don’t have to go through the hassle of adding beneficiaries or waiting for them to be approved on your mobile payment app to transfer money. You can use the VPA to transfer money instantly.
Enhanced Security: VPA transactions are highly secure and safe as neither the sender nor the receiver can access confidential details such as your bank account number. Only your VPA is shared for transactions, which cannot be misused for any purpose.
Multiple Accounts: With VPA, you can link multiple bank accounts to one VPA, making it easier to manage your funds and transfer money between your accounts.
Cost-Effective: Using VPA to transfer money is a cost-effective payment method, as it does not involve transaction fees or hidden charges.
How to Transfer money using VPA through UPI
Sending Money through VPA on UPI is quick, easy, and convenient. Here are the step-by-step instructions to transfer funds using VPA:
- Log in to any UPI payment application and click the ‘UPI/Send Money To Anyone’ option.
- Select the receiver from your phone contact list or enter the mobile number of the recipient if it is not saved on your phone.
- If the recipient does not use the same UPI app as you, ask them for their VPA on another app and enter that.
- Alternatively, you could click the ‘Scan QR’ option and scan the recipient’s QR code.
- Select the bank account you want to transfer and click ‘Proceed.’
- Enter the UPI PIN associated with the selected bank account.
- The amount will be immediately transferred from your bank account to the recipient’s bank account!
Using VPA, you don’t need to share your bank account details, such as your IFSC code or account number. You can share your VPA with the recipient to receive or send money. This adds to the convenience and security of the transaction.
FAQ’s
What is VPA?
A: VPA stands for Virtual Payment Address, a unique identifier used to send and receive Money through UPI-enabled apps.
What is VPA in UPI?
VPA in UPI is a unique identifier or payment address linked to your bank account and used to initiate UPI transactions.
What is VPA in Google Pay?
VPA in Google Pay is a virtual payment address used to send and receive money only through the UPI system. It is a unique identifier linked to your bank account and can be easily shared with other users.
What is VPA ID?
VPA ID is a unique identifier or payment address used to send and receive Money through UPI-enabled apps. It is also known as a virtual payment address or UPI ID.
What is VPA in UPI payment?
VPA in UPI payment is a unique identifier or payment address used to send and receive money only through the UPI system. It eliminates the need to share bank account details and provides a secure and convenient online transaction.
What is the VPA number?
VPA number is a unique identifier or payment address linked to your bank account and used to send and receive Money through UPI-enabled apps. It is also known as a virtual payment address or UPI ID.
