While using the UPI App you may have seen the term UPI ID. You can use this ID instead of the bank account number for making a payment. That is why you see this option as well for sending the money. The UPI ID is a must if you want to request money from someone. It is beneficial to use UPI ID for making payments.
UPI ID or VPA
UPI ID is also called as the virtual payment address (VPA). Hence I have also used the term VPA instead of the UPI ID. This address does not tells us the real account number. Rather, it is a virtual payment address only which directs our payment to real account of the beneficiary. This ID is only used for payments through the UPI Apps.
I have listed 5 main benefits of the UPI ID over the bank account number for making a payment.
1- Conceal your Bank Account Number
We know that fraudsters use our bank account number to steal out money. But, earlier we could not keep our account number secret as it was required to get a payment. But because of the UPI ID, you are not required to disclose your bank account for receiving the payment. Rather, you can give UPI ID instead of the bank account number. This ID does not give any idea of your bank account details. Hence, the UPI ID gives you the greater peace of mind.
2- Easy To remember
The UPI ID resembles the email ID. It uses a suffix of your UPI App which is taken from the bank name. The Prefix of UPI ID is generally taken from your mobile number or email ID. Even, you can also use your name or some other words for creating the UPI ID.
The Google Tez App, itself creates your UPI ID by taking gmail ID. The BHIM app uses your mobile number to create the UPI ID. However, most of the UPI app gives you the option to create an UPI ID. Since, you would use meaningful word, the UPI ID would be easily memorable. It is easier to remember UPI ID which has your name, phone number or email ID.
3- You can Change it
The UPI ID gives you more sense of security as you can easily change it. If you suspect that someone can misuse your VPA, you can change it easily. The new UPI ID would be immediately active. Even, you can have multiple UPI ID for different purposes. Just like a password, you can frequently change the VPA.
However, Every UPI App does not give this flexibility. In the Tez app, you can’t create or change the UPI App. The system, creates UPI ID on the basis of your Gmail address.
4- Easy To Find Out the Beneficiary
We know that BHIM uses your mobile number to create the UPI ID. Similarly Tez uses your email ID to create the UPI ID. Thus it is very easy to find out the UPI ID of a person using his/her mobile number and email address. BHIM and Tez gives you the facility to find out beneficiary from your contact. In fact, both of these apps use UPI ID to track the beneficiary.
5- Verify the Beneficiary
The UPI ID gives you the facility to immediately verify the beneficiary. It assures that you are paying to the right person. This is not possible with the bank account number. As you can’t find out the name of the bank account holder. But UPI ID produces the name of person as you tap to verify it. So, You always know that the money would reach to the genuine person.
How To Create UPI ID
Every UPI App gives you the facility to create a UPI ID. Although, we can use the UPI Apps without creating an UPI ID. But, this is must for receiving the money. Some of the apps automatically create a default UPI ID using your mobile number or email ID. For example BHIM and Tez has adopted this method. You can see your UPI ID in the profile page.
In the Google Tez, UPI ID is shown just below your name in the dashboard. It is created automatically. However, you can’t change it here. e
BHIM app gives you the facility to create an additional UPI ID. You can change it one. To create UPI ID in the BHIM, open the profile page. In that page, you can create a secondary UPI ID.
To Create UPI ID in the Paytm, you have to open the Payment settings Page. You can go there by tapping the menu icon in the top left. In the payment settings page, tap on the ‘Saved payment Details & Settings’ . In the resultant page, you would get the option to create a new UPI ID. You can also manage the existing UPI ID from there.
It is easier to set UPI ID in the Phonepe. Open the Profile page by tapping the person icon in the top left. Now you would see the link for ‘ My BHIM UPI ID’. You can create as many UPI ID as you wish in the Phonepe.