What is VPA in UPI? A Detailed Guide

07-Nov-2024

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In the last couple of years, all of us have started using online payment methods excessively. It makes financial transactions quick and easy and eliminates the need to carry cash around everywhere. One of the most popular modes of digital payment is the Unified Payment Interface (UPI). What do you do when you have to pay for a packet of chips at the local grocery store or pay at the petrol pump? You scan your smartphone and pay via UPI, right? Most of us are extremely used to just scanning our phones for all transactions, big or small. To make a payment through UPI, all you have to do is select the recipient, enter the amount to be paid and then authorise the transaction using your UPI PIN. You do not need the recipient's bank account details, as UPI apps use a Virtual Payment Address (VPA) for seamless transactions.

What is VPA, how is VPA used in UPI, and what are the benefits of VPA? Everything is discussed in detail in this article and will help you understand what VPA is in UPI better and how it is making transactions happen instantly and hassle-free.

What is VPA?

The full form of VPA is Virtual Payment Address and it is just like an email ID. Similar to an email ID, which is unique to each user, a VPA in UPI is given to each individual who uses UPI as a mode of payment. Since UPI transactions do not require a bank account number or IFSC code, the only thing required to process payment via UPI is VPA. A VPA is a combination of letters, numbers, and special characters that is unique to each user and is like a virtual identity for the user's bank account.

When discussing what is VPA in UPI, you should keep the following in mind:

It is a unique identifier used by UPI to track any user's account.
You can use VPA to send or receive money through any UPI-enabled app.
VPA does not include the bank account details.
The primary VPA is set by the UPI app you are using, but you can check for the availability of your preferred VPA.

How do Transactions Happen Under VPA?

All UPI-enabled apps use VPA to facilitate transactions. So, to make a transaction under VPA, the first step is to choose your UPI ID for all further transactions. A VPA should be easy to remember, so it can be your name, phone number, or the first half of your email address. You can use VPA to log in to the UPI app. You will have to link your VPA to your bank account before initiating any transaction and ensure that the mobile number registered to your account is the same one you use for your UPI notifications. Once these initial formalities are completed, transactions can be made under VPA.

Enter the VPA and amount to be sent/received.
Authorise is with your UPI PIN.

That's it! The money will be transferred instantly.

How to Create VPA?

Usually, when you register on any UPI-enabled app, your VPA is created automatically when you link your bank account and registered mobile number. But if you want to choose your own VPA, follow these steps:

Install your preferred UPI app on your smartphone.
Open it and enter your mobile number registered with your bank account to link your bank account.
Enter all the necessary details and link your account. Then, you will get the option of choosing between a UPI ID or VPA options.
You can select your preferred option or create your own ID.
After creating your VPA, you will have to set a four or six-digit PIN.
You are ready to start transactions on your UPI app.

How to Send Money via VPA?

VPA in UPI-enabled apps has made fund transfers extremely smooth. When you want to send money to someone, make sure that person uses the same UPI app, and you will need that person's VPA.

Once you have the person's VPA, follow these steps:

Log in to your UPI app by entering your PIN.
Select fund transfer through UPI.
Enter the receiver's VPA.
Enter the amount to be transferred; you can add any remarks if you want to.
If you have more than one VPA, you will have to select the one that is linked to the bank account you want to use to pay and click submit.
Confirm the details.
Enter your PIN to authorise payment.

How to Receive Money via VPA?

Receiving money via VPA is as easy as sending it and involves just a few simple steps:

Open your UPI app.
Select UPI and click on 'Collect via UPI'.
Enter the VPA of the sender.
Type the amount to be received and add any remarks you want to.
Select the VPA account in which you want to receive money.
Submit the details and wait for the sender to approve the transaction.
As soon as the sender approves, the amount will be credited to your chosen account.

Benefits of VPA

VPA in UPI has made financial transactions very efficient and quick without the need to share bank account details; there are many benefits of VPA:

Conceals Your Bank Account Number: When you wish to keep your bank account number and other details private from people, VPA is most helpful as it does not require your bank account number to complete a transaction. This way, people cannot tell if you have a savings account or a current account in your bank, and you can easily enjoy cashless transactions via VPA in UPI.
You Can Change it: You can change your VPA to another account and then use the new one. However, after linking your bank account with a VPA, you will not be able to change or remove it, and it is not possible to link a bank account to multiple VPAs.
Available 24/7: You enjoy the freedom of sending or receiving money at any time of the day or night, as VPA can be used to transfer money instantly throughout the day. It is also a great help during emergencies and when you do not have any cash with you.
More Security & User-Friendly: UPI payments are one of the safest modes of fund transfer and are also very user-friendly. They are easy to learn and use for people of all ages and make it convenient to send or receive money in real-time.
Allows to Track Transactions: Your UPI app will keep a record of all transactions, including the amount, time, and date of the transaction, recipient or sender details, etc. So, having a VPA number makes it very easy to track your transactions on the UPI app.

Things to Remember About Virtual Payment Address

A few things to consider about VPA are:

Choose a Unique VPA: To prevent any fraudulent transactions or mishaps, choose a unique VPA. Your VPA should be easily recalled by you but difficult for anyone else to guess.
Confirm that the Receiver's VPA is Correct: Before you authorise a transaction and send money to anyone, ensure that the receiver's VPA is correct. It is also not safe to share your VPA with unknown people.
Multiple Bank Accounts: When you set your primary account in a UPI, you can link multiple bank accounts with a single VPA and easily change your primary account anytime. Thus, all your transactions can be handled with a single VPA.
Limits of Transactions: There is an upper limit set for transferring funds via any UPI app, meaning you can send or receive only within the limit set. The maximum amount you can send or receive depends on your bank and type of account.

Frequently Asked Questions

What is the full form of VPA in banking?

The full form of VPA is Virtual Payment Address, which is a unique address created by your bank for your UPI transactions.
How to find VPA in Google Pay?

It is easy to find your VPA on Google Pay. When you open the app, click on your profile picture in the top right corner. Then, open the QR page; your VPA will be below the QR code.
How to find VPA in PhonePe?

To find your VPA on the PhonePe app, click on your profile picture. Click on UPI IDs, which is under the Payments Settings section. There, you will find a column 'My UPI ID/IDs' highlighted in blue. It will be under the Transfer Money option, which is your VPA.
How to find VPA in Paytm?

To find your VPA in Paytm, just go to your profile in the Paytm app. There, you can easily get your UPI ID or VPA,
Can I share my UPI ID or UPI VPA?

Yes, you can easily share your UPI ID or UPI VPA with anyone who wants to send you money. It is one of the most popular ways of exchanging money.
Can I use an existing UPI VPA on another payment app?

No, it is not possible to use the same UPI VPA on multiple apps at a time, as each bank has its own UPI VPA.
Is it possible to link multiple bank accounts to one VPA?

Yes, it is possible to link multiple bank accounts to a single VPA.
If I have an existing VPA can I link the same to a new app?

Yes, it is possible, but it will depend on the UPI app you are using to exchange funds. Some banks may not allow using an existing VPA.
Will my VPA expire if I do not use it?

No, your VPA will not expire even if you do not use it for a while.
How can I block my VPA in UPI?

If you want to block your VPA, open the UPI app and disable it. You can also block your VPA in UPI via net banking.
How can I change VPA in UPI?

Open your UPI app if you want to change or edit your VPA. Go to App Settings, click on VPA and then select Edit VPA.
How many VPAs can I have?

You can have multiple VPAs on various UPI apps linked to the same bank account.
How to find VPA?

Finding your VPA address is easy; just click on your Profile in your UPI app. If you have already set your VPA, it will be visible in your profile.
Is VPA same as UPI ID?

Yes, a VPA and a UPI ID are the same thing. VPA is a UPI ID generated for online money transactions using the UPI system.

Naina Rajgopalan

Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She's been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo, a neobank that offers flexible and customised financial products, along with benefits such as insurance on balance, safe & secure banking, and so on, Naina stays updated with the latest of what happens in the banking and fintech industries. She has taken upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.