What is Virtual Payment Address (VPA)?

What is Virtual Payment Address (VPA)?

02 January, 2024

Digital payment methods have changed the way we transact today. We are no longer reliant on cash to make payments. Among other digital payment modes, Unified Payment Interface (UPI) has gained wide popularity. You can use UPI to pay your peers and merchants in real-time without any hassle. All you need to do is select the recipient, enter the amount, and authorise the transaction with a UPI PIN. The reason for such seamless transactions is the use of Virtual Payment Address (VPA). Read along to learn what VPA is in detail.

What is VPA in UPI?

The full form of VPA is Virtual Payment Address (VPA). VPA is a digital ID that lets you receive and send funds conveniently through UPI-enabled apps. VPA eliminates the need to enter details like bank account number, branch name, IFSC code separately while conducting a transaction. With VPA, the senders or recipients can identify your account with a single indicator, which simplifies the payment process. A typical VPA looks like username@bankname.

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Is VPA and UPI ID the Same?

You may come across the term UPI ID on the UPI-enabled apps instead of VPA. Even so, both terms essentially mean the same thing. They are digital addresses to your bank account, which facilitate money transfers. So, if someone asks for your UPI ID, they are referring to your VPA, which helps them identify your account to send and receive funds.

How to Create a VPA?

Your VPA gets automatically created when you register on a UPI-enabled app. You simply need to link your bank account and the registered mobile number. Alternatively, you also have the option to create your own unique VPA. The process involves the following steps:

  1. Launch a UPI-enabled app on your smartphone. The app can either be a mobile banking app with the UPI payment option or a third-party UPI app.

  2. Once installed, enter your mobile number registered with the bank to link your bank account.

  3. After providing the required details and linking your account, you will get an option to choose between UPI ID or VPA options.

  4. You can either choose your desired option or create your own ID at this stage.

  5. Once you create your VPA and set your six or four-digit UPI PIN, you can start initiating UPI transactions within a few clicks.

Procedure to Send and Receive Money through VPA

Besides knowing what VPA means and the steps to create it, you must understand how to send and receive money through this platform. The procedure to send money involves these simple steps:

  1. Enter the VPA or UPI ID of the recipient.

  2. Click on the pay via VPA or similar option on the UPI-enabled app.

  3. Enter the amount and remarks.

  4. Click on the ‘Pay’ option and authorise the transaction through your UPI PIN.

  5. The payment is then processed instantly.

The moment the payment goes through, you will receive an SMS alert, and the debited amount will also be recorded in your transaction history at the same time.

To receive money, you can opt for any of the following methods:

  • Share your VPA with the sender, and the sender will follow the above-mentioned steps to send you money.

  • Request payment from the sender by entering details like their VPA, the expected amount, and remarks, if applicable. Once done, the sender will receive a notification request on their UPI app asking for payment. They can simply click on the pay option and authorise the transaction with their UPI PIN. The amount is then credited to your account instantly, and you will receive an SMS alert regarding the same.

Benefits of VPA

Using VPA to make UPI payments involves the following benefits:

  • Convenient transactions

    On conducting transactions through VPA, you do not need to enter the bank details of the recipients each time. You can simply enter their VPA and initiate the transaction with a few clicks. This proves convenient and saves your time, especially during emergency fund transfers.

  • Secure processing

    When you receive or send funds through VPA, you need not provide any bank credentials. As there is no exchange of sensitive data, you do not have to worry about the theft of your financial information. Also, the extra layer of protection through UPI PIN and biometrics further protects your transactions.

  • Simple usability

    You need not have advanced technical knowledge to send or receive money through VPA. UPI-enabled apps are fairly simple to use. Once you have registered on the app, using VPA is as simple as sending a message. Simply follow the few steps mentioned earlier. If you need additional help, the intuitive UPI apps have a simple interface to guide you through the process.

  • Wide acceptance

    Multiple banks and payment service providers across India support payments through VPA. Also, the increasing use of UPI has resulted in almost everyone having a VPA. Hence, you can transact with almost every merchant or peer through their VPA without any hassle.

  • 24x7 accessibility

    You can use VPA to make transactions at any time of the day or night, seven days a week, as long as you have an internet connection. This convenience of sending money round the clock through VPA in UPI apps has made last-minute payments like bills, rent, and other transactions simple without limiting you to specific banking hours.

Make UPI Payment through VPA with PayZapp

Now that you know what VPA means in UPI, you might be interested in leveraging the convenience it provides for making payments. If you are looking for a seamless and reliable app to send money through VPA, consider using HDFC Bank’s PayZapp. The PayZapp app allows you to pay your way, one swipe at a time. From utility bills and recharges to rent and municipal tax, you can make a range of payments through PayZapp. The app is fast and secure and lets you save with assured cashbacks and rewards. The intuitive passbook feature PayZapp also lets you track your spends conveniently.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

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