The only detail needed for receiving or transferring money across UPI(Unified Payment Interface)-based platforms, VPA is a unique piece of your very own virtual financial ID! VPA stands for virtual payment address and is used by all the online money transferring applications presently.
No other financial details, like your bank account number or IFSC code, are needed to proceed with an online transaction. Your VPA address, alternatively known as your UPI ID, will do the job alone!
VPA allows you to make transactions anytime, anywhere. It is just like an email address, with the name of the bank added as a suffix to the ID. For example, xyz2001@okicici is a VPA address, with the name of ICICI bank added as a suffix. It is essential for making UPI-based transactions, and it facilitates all e-transactions and makes them instantaneous!
Ziploan provides more information on your VPA address, so make sure to check that out as well. All of your transactions, like shopping, bill payment, and even business loan payment, can be done with the help of VPA, which makes it a comprehensive all-inclusive financial address.
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How to create your VPA ID?
Creating a VPA ID is simple, and we’ll be explaining it in even clearer terms. You just need to follow a few easy steps, and then you’ll have your own VPA address that will help you in UPI transactions.
- Download any UPI app of your choice- it can be Google Pay, PhonePe, Paytm, etc.
- Fill in all the bank details- account number, IFSC code, account holder’s name, and so on.
- Choose a VPA ID that suits you or the one you would use.
- The next step involves linking your VPA ID to your bank account.
- The final step is the verification process. It can involve pattern verification, a security question or so on.
How to use your VPA ID?
Using your VPA ID is no big task either. It just requires a few simple steps, which are to be performed on your phone itself. Such easy steps make using VPA an easy task and make remote transactions accessible:
- Open the UPI app that you use on your phone. It can be Google Pay, Paytm and so on.
- Enter the security pin to unlock your app.
- Click on the “New Payment” section.
- Select the “Transfer Money” option.
- Select UPI ID or VPA now.
- Enter the VPA or UPA ID of the person you wish to send the money to.
- Verify the VPA ID and then enter your UPI pin.
- The money will reach the person instantly!
Transferring and receiving money using VPA
Transferring money and receiving it via UPI-based apps is fairly easy. It requires minimal details and is much more efficient than other digital payment methods. Transferring money using VPA involves you putting in the VPA ID/UPI ID of the person you’d like to pay your money to or the beneficiary.
After a verification step, the money will be instantly transferred to the beneficiary’s account. To receive money from a third party, you need to initiate a payment request and send it to the sender.
The request then needs to be verified by the sender, and only then will they be able to make the payment. This is a secure and reliable process, and verification from both parties only ensures its credibility and integrity.
What are the advantages of VPA?
The advantages of VPA are virtually limitless. It is a great way to track all your transactions and is safer and more secure than traditional methods. With VPA, you get a guarantee that your money will be refunded if it has been wrongly deducted!
- Track all the transactions: Using VPA through your UPI app makes it easy to track all the transactions since all of those can be traced back to a single account, and your UPI app keeps track of all the transactions for your convenience.
- Instant 24*7 payments: VPA makes it possible for you to make payments from any corner of the world to anyone you want! The service is available 24*7, and your money can be transferred at any time of the day!
- No need for other details: You do not need to remember your bank account number or IFSC code because a single VPA ID will be helpful for all of the transactions you make. It is also relatively easier to remember.
- Secure and safe transaction: UPI transactions are safer and more secure than conventional methods. This is because your bank details remain a secret when you make payment using your VPA, and your VPA can even be changed!
Apart from these visible differences, other qualities make VPA a better option than digital wallets, cards, etc. The conciseness of instantaneous transactions and easy remembrance make it a better option than other digital methods! VPA is also suitable for small business owners, as it can help them make day-to-day transactions and help them in paying off their business loans as well!
How much has VPA/UPI ID grown since its introduction in the country?
UPI (UPI full form– Unified Payment Interface) has been in circulation in the market since 2016 and has grown ever since. More and more merchants and customers have adopted it, and according to the National Payments Corporation of India, there are almost 261 banks on UPI platforms with a value of 7,71,444.98 crores!
This is all during October 2021 alone. With the growth of UPI, the usage of VPA has increased as well, and VPA has become one of the most used forms of digital identifiers as of 2021. The growth of VPA ID from January 2020 to September 2020 is remarkable, with growth from INR 2,162 billion to INR 3,290 billion, making it an asset for the country’s finance industry!
Ziploan is an organization that supports MSMEs and small businesses that need financial support. There are a lot of skilled small enterprises out there that face financial obstructions, and we aim to bridge the gap between finance and skill by providing an MSME loan to them ranging from Rs.1 Lac to Rs.7.5 Lacs. To know more about our initiative and for inquiries, visit our website today!
Virtual Payment Address (VPA) – FAQs
UPI ID or the Virtual Payment Address (VPA) is a unique ID created by the user to send or receive money through UPI. Having a UPI ID, linked with a UPI-enabled Bank, enables a user to receive money in his/her bank account without sharing his/her account number or other details.
To find your UPI ID:
1) Open Google Pay .
2) In the top right, tap your photo.
3) Tap Bank account.
4) Tap the bank account whose UPI ID you want to view.
5) You will find the associated UPI ID under “UPI IDs”.
The Virtual Payment Address or VPA is the most important concept of UPI. It is also known as UPI PIN, UPI Code or UPI ID. VPA is a unique ID that you create for your bank account. This unique ID can be used for online money transfer across the banks in India similar to IMPS, NEFT, RTGS, etc.
In the top right, tap your photo. Tap Bank account. Tap the bank account whose UPI ID you want to view. You will find the associated UPI ID under “UPI IDs”.
A UPI ID or VPA (Virtual Payment Address) is a unique ID that is used to make UPI payments in place of bank account details. A PhonePe UPI ID is a unique ID linked with your bank account which has at least 3 characters followed by a handle (@ybl / @ibl / @axl).
Virtual Payment Address also referred as VPA is something like an email-ID, which is given to an individual using the Unified Payment Interface (UPI) service to send or receive money. With UPI, fund transfers can be initiated without an IFSC code or bank account number.
A VPA looks like abc@icici. You can check for availability and create one as you desire. This VPA links to your bank account. As mentioned above, a VPA like example@icici can be linked to an Axis Bank account, and vice versa.