What is VPA in UPI & How to Create Your Virtual Payment Address

When was the last time you used cash to buy something? Digital payments have taken over the world and in this new landscape, UPI (Unified Payments Interface) has emerged as a transformative platform in India. 

At the center of it all is VPA - Virtual Payment Address which helps UPI facilitate seamless transactions. Users can easily transfer money without sharing their bank account details, making it both convenient and secure.

In this guide, understand what VPA means, its benefits, how it functions and how you can create your virtual payment address for UPI transactions.

VPA - What Does It Mean?

VPA stands for Virtual Payment Address. VPA is basically a unique identifier for every UPI user. This allows users to transact money without having to enter their bank account details like account number and IFSC code. 

This goes without saying that VPA is a much more secure method of transferring money. You can transfer funds with the recipient's VPA instead of their bank account details. A typical VPA looks like this - ‘username@bankname”.

How To Create A VPA for UPI Transactions?

When you sign up on an app that supports UPI, your VPA automatically gets created. Once that’s done, all you have to do is link your bank account and mobile number. 

Alternatively, you can also create your own VPA, by following these simple steps:

Step 1: Open a UPI-enabled app and link your bank account by entering the registered mobile number.

Step 2: Fill out all the necessary fields.

Step 3: Select the option to create your own UPI ID.

Step 4: Once you’ve set your VPA and UPI PIN, you will be able to initiate transactions. 

How To Link Bank Account To Your UPI?

To add another bank account to your UPI, follow these steps:

1. Go to your ‘profile settings’ or ‘account management’ settings.

2. Under the bank account section, select ‘Add New Bank Account’.
3. Either choose your existing VPA or create a new one.

4. Verify your bank account by entering the OTP sent to your registered mobile number.

Benefits Of Using A VPA?

Here are some key benefits of using a VPA:

Simple: VPA simplifies financial transactions. It requires no extensive tech knowledge to transfer funds, just a few simple steps and an app that supports UPI are all you need to send and receive money.

Convenient: VPA excludes the hassle of entering bank account details like your account number and IFSC code, to proceed with a transfer. A simple ID helps you transfer money instantly. 

Secure: VPA ensures secure transactions by eliminating the need to share sensitive bank information. The user's ID is enough to send and receive money. The UPI PIN also adds another layer of security.

Accessible: With UPI’s widespread use, almost every merchant has a VPA, facilitating seamless transactions. Money can be sent 24/7, which is crucial in case of emergencies.

How Do Transactions Work Under VPA?

Initiating transactions using VPA is the easiest way to transact money. Here’s how it works:

• Open your UPI application and go to the “Send Money” or “Enter UPI ID” section.
• Choose the recipient's number on your contact list. If they have an account in the UPI app, their name will appear. If not, ask for their VPA and enter it to send money.
• Next, select the bank account from which you wish to make the transfer. 
• Enter your UPI PIN and the amount will be sent instantly.

Frequently Asked Questions