Virtual Payment Address or VPA: Meaning, Benefits, and Steps
Government of India has introduced a virtual address for all your UPI transactions called VPA. Read everything you need to know here.
VPA (or Virtual Payment Address) refers to a unique identifier through which UPI tracks a person’s account. Since digital payments are on boost, UPI (Unified Payment Interface) is widely used for bill payment, money transfer, rent payment, and other petty transactions. UPI payments do not incur any additional charges, and bank account details remain secret.
Why VPA?
VPN is used to keep track & record a person’s account & transactions. We can call VPA an ID that does not contain details about your bank account but helps you to send and receive payments. It saves time by eliminating the need for filling in bank details again and again.
Identifying VPA
A VPA is in the form of ‘abc@bankname’. Here in the place of ‘abc’, you can use any name, mobile number, or anything else.
Examples:- adi@UPI
- 1234@sbibank
- SBI Pay: @SBI
- PNB UPI: @PNB
- Axis bank: @axis
- ICICI Bank UPI: @icici
- Bank of Baroda: @barodapay
- HDFC Bank UPI: @HDFC
- Yes Bank: @YBL
How to set up VPA?
Setting up VPA is an easy process. Just follow the steps below, and you can create a VPA of your choice.
- First, open the UPI App that you want to use. Let’s take Bhim for a better understanding.
- Link the UPI app to your bank account & make sure to provide a bank registered mobile number.
- Then you need to verify your account through OTP and authentication method (like grids or security question)
- You will see the home tab along with several other options. Click on the profile tab next to the home tab. (In some UPI Apps, the profile option is in the dropdown menu).
- Fill in all your bank details.
- Select a VPA. (Choosing a VPA is similar to choosing an email address, if you fill in a non-existing id, then you will get that, but if it’s existing, you have to try another one).
- Link this VPA to your bank account number.
- Make sure to verify all the details once and submit it.
How do VPA Transactions work?
VPA transactions work with UPI enabled app. Note that whenever you send or receive money, you need to fill the UPI pin; thus, make sure to remember your pin and VPA both. This is done to ensure that the right person is making or receiving payment.
VPA transactions can be either for receiving the money or for sending the money. Let’s look at the working of both:
1. Sending cash via VPA:
Sending money through VPA is only possible if you know another person’s VPA. Once you know it, follow the steps below for sending money:
- Open the UPI App and enter the pin.
- Choose fund transfer through UPI and enter all the receiver details like VPA, amount to be transferred and remarks.
- Check the details and type your MPİN to confirm.
2. Receiving money via VPA:
To receive money through VPA, follow these steps:
- Open your UPI app and log in.
- After selecting UPI, click on ‘collect via UPI’.
- Fill in the VPA of the person from whom you want to receive money and the amount along with any remarks.
- Also, if you have multiple VPA, then you have to choose the one in which you want money.
- After submitting, you have to wait for the other person’s response. If he approves the payment, the amount will be transferred to your bank account.
Why use VPA? Benefits & Uses:
- Track Transactions Since VPA allows you to use a single virtual name for all your transactions, you can keep a record of all your transactions in one place.
- No Need to Share Bank Details If you use VPA, you only need to share UPI İD and not further banking details for sharing and receiving money.
- Available 24*7 Through the UPI app, you can instantly share and receive money because it’s open 24*7. For these instant financial transactions through UPI, VPA is a must. You can even make transactions on holiday.
- Unique and Straightforward VPA is a unique identifier for each account, making the UPI process unique. Also, UPI becomes more concise and user friendly than NEFT, digital wallets, card payments etc., due to VPA.
- Easy to Remember VPA works with the virtual address of the sender/receiver. So, you don’t need to memorize the IFSC CODE, account number, net banking ID, etc., for receiving or making payments.
- More security Another benefit of using VPA is that it is safe from cyber frauds. This is because when you pay through VPA, your bank account details remain secret, and you can even change this VPA. In this way, VPA ensures double security from cyber attacks.
How to change VPA?
- Open the UPI app, say Bhim UPI, and click on the profile tab.
- You will see three dots at the top right corner of the screen. This is the menu button. Click on that and then tap on the ‘settings option.
- You will see an option to edit UPI İD. Click on that Edit option.
- Add your new İD and then click on confirm button.
In the times of digital transactions, no one can turn a blind eye to the importance of UPI and VPA. Looking at the benefits of VPA, it becomes vital to stay informed about all the ins and outs of VPA. We hope to get you a better understanding of VPA through this article.