The Virtual Payment Address or VPA is an address given to the user of UPI payment system. We have to use VPA to transfer fund. The virtual payment address replaces the bank account details. Thanks to the virtual Payment Address, you don’t need anything else to transfer money.
The virtual payment address makes the UPI unique. On the basis of VPA, the UPI is most simple payment method. The UPI is a mobile based fund transfer application. It has many benefits over the card payment, IMPS and digital wallets.
What is VPA
If you want to pay money to anyone without using the cash, then you need the bank account number of the payee. Along with the bank account number, you also require the IFSC code. In other words, the bank account number and IFSC code is the address to pay the money.
But your bank account details can help the fraudsters. Using bank account details, the fraudsters try to cheat the gullible people. So it is always better if you can avoid exposing your bank account. The VPA fulfills this requirement.
Virtual Payment Address is an address which is used in place of bank account address. This address is highly flexible. You can choose it and change it anytime. However, to complete the transaction, a VPA is linked to the bank account address. Since it is not your actual payment address but act as the payment address (bank account details), It is called as the virtual payment address.
The virtual payment address resembles the email ID. For example, you can have a VPA as rishi21@axis or shruti@PNB .
Virtual Payment Address and UPI
Because of the VPA, the UPI easily hides the bank account details. The whole transaction of UPI takes place without the use of bank accounts.
Only the NPCI knows to which account a VPA is linked. The NPCI itself does the transaction. The banks only act as the creditor and deductor.
Benefits of Virtual Payment Address
- You do not give bank account number to receive money.
- It is easy to remember than the bank account number and IFSC.
- To be more secure, you can change the itwhenever you suspect.
- You can get VPA of your choice.
How To get VPA
The VPA is a part of the UPI payment system. Therefore, you have to download the UPI App to get the virtual payment address. With the download, you have to link a bank account to the UPI app. The UPI app is linked to the bank account through the mobile number. Therefore, you should use the mobile number which is linked to the desired bank account. You must download the app on same mobile which is linked to bank account.
After the mobile verification, you have to go through another round of verification. It can be grid, security answer or any other authentication. After the authentication, you can create a virtual payment address for your given account.
Like an email address, you have to give your choice of VPA and check for the availability. If the given Address is available, proceed. Otherwise, try another address.
If your VPA is unique, you would get instant approval. You can use it immediately for getting money from another UPI app user.
Rules of Virtual payment address
- You can have many virtual payment addresses
- You can change it whenever you wish
- No two VPA would be the same
- You can link many accounts with one VPA but you have to set an account as the default.
- You can’t choose the suffix of the VPA. It is fixed by the bank.
VPA Suffix of the Different Banks
SBI Pay – @SBI
ICICI Bank UPI– @icici
PNB UPI – @PNB
HDFC Bank UPI – @HDFC
Axis bank – @axis
Yes Bank – @YBL
Bank of Baroda – @barodapay
BHIM – @upi
Transfer Money Using VPA
The main use of the virtual payment address is the fund transfer. To give money to anyone using the UPI method, you must know the VPA of the beneficiary. These are the steps of money transfer.
- Open the UPI enabled app and enter the PIN
- Choose the option of fund transfer through the UPI
- Enter the details of the beneficiary VPA, amount and remarks.
- If you have multiple accounts/virtual payment addresses, you can choose the VPA you would like to debit. Click on Submit
- Confirm all the details
- Enter MPIN to authenticate the fund transfer.
Get Money Using VPA
UPI provides a way to ask money from someone. Let us see the steps.
- Login to UPI-based app.
- Click on UPI and then choose “Collect via UPI”
- enter the VPA of the person from whom you want money.
- Enter the amount and remarks
- If you have multiple accounts/virtual payment addresses, choose the address to which you want money.
- Submit the details and wait for the approval
- When the person approves your asking amount, you would get it.
Not only the virtual payment address, the UPI is also working on Payment using the Aadhaar number. In the new version of UPI, you can also use Aadhaar number instead of VPA to pay money. You can also try the Aadhaar Payment app which suitable for rural area. Besides these payment methods there are other methods of digital payments which makes your life easy and convenient.