What is VPA in the UPI System?

The sheer convenience that online transactions provide is the main reason for their rising popularity. Whether it is the transfer of money or the payment of bills, it is key to know how online transactions function. The Unified Payments Interface  (UPI) is a revolutionary payment mechanism that makes digital payments easier than ever before. VPA in UPI is something you should grasp.

UPI Made Simple with VPA in UPI

UPI represents any transaction that is made in real-time and is instant. These transactions are enabled through smartphones. In fact, in the current Economic Survey (2023), UPI payments made up 52% of all payment transactions.

VPA stands for  Virtual Payment Address. As you benefit from UPI, you should know how VPA works to facilitate the UPI process. Virtual Payment Process (VPA) is essentially a unique personal ID, enabling you to receive or send money from your bank account via UPI. Like your phone number is specific to you, a VPA is unique to a user.

This brings us to the question of VPA’s role in the UPI system. The Virtual Payments Address is a direct routing of payments that go straight into your bank account. You do not have to share your personal bank account number or the IFSC code. You can just share that address with the other party in your transaction, and money can be easily transferred/received.

Creating a virtual payments address

In UPI payment, the VPA is crucial and is formed according to a standard format. Your name comes first, followed by the bank’s suffix. So, the VPA may look something like this: username@yourbankupi.

When you are all set to create your personal VPA, you have to first get a UPI app on your smartphone. This could be a mobile app of your bank or an app for a third party. Third-party mobile apps such as Paytm, Google Pay, etc., enable convenient and rapid transactions. Once any of these apps are installed, it is easy to click on the option to generate your VPA.

Once your VPA in UPI has been established, you can connect your bank account to the new VPA. You can do this with the creation of an mPIN. This is a passcode, 4–6 digits long, and every time you make a transaction, this will have to be entered on your smartphone. Of course, the phone number with which you are creating your VPA in UPI will have to be the same as the one registered with your bank. Once you create the PIN, you can go ahead with making transactions.

How is Money Transferred?

In case you wish to make a payment, you need to have the receiver's VPA or UPI-linked mobile number. In your UPI app, you can select an option to “pay with VPA” “pay using phone number” or “pay with QR code”. Once you choose the mode, you can enter an amount, and your password and click to pay.

Money Transfers Made Easy

This is the simplest method to transfer funds. Bank details do not have to be shared, so the layer of security this provides is appealing to most users. It is also a convenient way to make cashless and transparent payments quickly. If you wish to open a bank account to use UPI, you can try Fi and do so. Sign up with Fi Money to make it your all-in-one app. This could be your savings account, investment platfrom, and UPI payment app!

Frequently asked questions

How do I pay via VPA?

You can make payments via VPA through UPI by logging into your UPI and entering the beneficiary’s VPA along with the amount to be transferred.

Is VPA the same as UPI ID?

VPA is a unique identifier of your account. This permits other parties to identify transactions you make as being exclusively your own (and not someone else’s). UPI ID is essentially the same as VPA.

How do I get VPA on Google Pay?

Open your Google Pay app. Go to your profile and click on that. There will get the option called “bank accounts”. Click on it. You can choose the bank account for which the VPA is. Lastly, opt for the VPA to be used related to the bank account through which transactions will be made.