Virtual Payment Address also referred to as a VPA, is similar to an email ID, which is given to an individual using the Unified Payment Interface (UPI) service to send or receive money. With UPI, fund transfers can be initiated without an IFSC code or bank account number. Therefore, VPA is essentially the only piece of information required for all transactions.
What is Virtual Payment Address (VPA) in UPI?
The full form of VPA is Virtual Payment Address. VPA is a unique digital identifier within the Unified Payments Interface (UPI) system that allows for instant, secure fund transfers between bank accounts in India using mobile devices. Developed by the NPCI, VPA offers a seamless way to transact without needing to share sensitive bank details like the account number, branch name, or IFSC code. Instead, VPA serves as a single, secure address for receiving and sending money, streamlining the process for both senders and recipients.
A VPA acts as the user’s virtual identity, combining letters, numbers, or special characters into a distinct ID (e.g., name@bankname). By using a VPA, users can transact securely without exposing their actual bank details, making it ideal for peer-to-peer transfers, bill payments, and online shopping.
Creating a VPA of Your Choice
Step 1: Open the UPI app you have installed on your mobile device. Here, the BHIM app is used for demonstration purposes.
Step 2: Click on the ‘Profile’ tab on the home screen.
Step 3: If you have already set a VPA, the primary VPA will be shown. Click on the arrow that leads to the right.
Step 4: Click on the ‘+’ mark on the screen to create a VPA of your choice.
Step 5: You will be given an option to choose the first part of the VPA, i.e. the segment that appears before the ‘@’ symbol. A list of recommendations also appear. You can choose one from the list or type your desired VPA and check for its availability.
Step 6: Click on ‘Submit’ to confirm the VPA. That’s all!
FAQs
Details about VPA?
- Virtual Payment Address is a unique identified that enables UPI (Unified Payment Interface) to track the user’s account
- This ID does not consist of a bank account number and other details
- Through a UPI-enabled app, VPA can be used to make and request payments
- This helps users by not letting you fill bank details repeatedly
- The primary default VPA is set by the UPI application that you are working on.
- You can check the availability of the VPA you prefer to choose.
How do Transactions Happen Under VPA?
Once you have installed a UPI-enabled app, you are required to choose a UPI ID for all your further transactions. A VPA can be anything ranging from your name, the first half of your email address, or even your mobile number.
This is to make sure that you do not forget it when required. You can log in to a UPI-enabled app using VPA. Linking VPA to a bank account is an essential step before you initiate any transaction via UPI. Also, make sure that the mobile number you have linked to the bank account is the same as the one you have registered you are receiving a notification.
Upon entering the VPA and the amount to be sent/received, you must enter the valid UPI PIN that was created while registering with UPI. This is a validation required to confirm that the right person is making the transaction.