What is VPA in UPI

Know about VPA in UPI system in India, its features and benefits and how to create VPA in detail.
What is VPA in UPI
3 mins
13 July 2023

What is VPA in UPI

Virtual Payment Address (VPA) is a unique identifier used by Unified Payments Interface (UPI) system in India. VPA is a digital payment method that replaces the need for bank account numbers and IFSC codes. Instead, users can create a VPA that can be shared with other users to enable payments through the UPI system.

In simple terms, a VPA is a virtual address linked to a user's bank account. This address can be used to send and receive money through the UPI system. VPA has made digital payments more convenient by eliminating the need to disclose sensitive bank account details.

Benefits of using Virtual Payment Address

The use of Virtual Payment Address in UPI has several benefits. These benefits have contributed to the widespread adoption of the UPI system in India. Some of the benefits of using VPA in UPI payment are:

Secure payment method

VPA is a secure payment method because it eliminates the need to share sensitive bank account details. Users can create a unique VPA linked to their bank account to make payments.

Easy to use

UPI payment system with VPA offers an easy and convenient method of payment. Users can send and receive money by sharing their VPA with other users. UPI payment method can be accessed through mobile phones, making it accessible to everyone.

Faster payment processing

UPI payments with VPA offer faster payment processing. Transactions are processed in near real-time, and the money is transferred instantly. This makes it easier for users to make payments and receive money quickly.

Cost-effective

The use of UPI payment system with VPA is cost-effective as it eliminates the need for physical cash transactions. The UPI system does not charge transaction fees, making it a cost-effective payment method.

How to create a VPA

Creating a virtual payment address is easy and can be done through the Bajaj Finserv app installed on your mobile phone. The steps to create VPA via the Bajaj Finserv BBPS platform are:

  1. Download the Bajaj Finserv mobile app on Google Play Store or App Store.

  2. Login with your bank linked mobile number.

  3. Click on ‘UPI’ under ‘BAJAJ PAY’ section.

  4. Select your bank and an SMS will be sent to confirm the bank details.

  5. Once the registration is complete, you can create your unique VPA.

  6. Now you can set up your PIN to proceed with the transactions.

Once the VPA is created, it can be used to send and receive payments through the UPI system.

How does a VPA transaction happen

VPA transactions can take place through the UPI-enabled mobile app. To initiate a transaction, the sender enters the receiver's VPA and the amount to be transferred. Once the details are entered, the transaction is processed and the money is transferred from the sender's bank account to the receiver's bank account.

What are the important things to know about VPA

While using VPA, there are a few things that users should keep in mind to ensure a smooth and hassle-free transaction experience. These are:

Unique VPA

It is important to choose a unique VPA that is easy to remember and share with others. Avoid VPA that could easily be guessed or replicated by fraudulent individuals or bots to prevent the loss of other funds.

Confirm the receiver

Before initiating a payment, always ensure that the receiver’s VPA is correct. You should avoid sharing your VPA with unknown or unidentified individuals to avoid loss of funds.

Multiple bank accounts

You can link multiple bank accounts to a single VPA and set your primary account in the UPI app. You can also change your primary account at any time. This enables you to use a single VPA for all your transactions.

Transaction limits

UPI transactions with VPA have certain limits on the amount that can be transferred. These limits can vary depending on the bank and the type of account. Make sure you are aware of these limits while making payments.

Virtual Payment Address (VPA) is a virtual address linked to a user’s bank account for easy and secure payments. Creating a VPA is a simple process that can be done through any UPI-enabled app in India. The benefits of using VPA include faster payment processing and cost-effectiveness. To ensure a smooth and hassle-free transaction experience, it is important to choose a unique VPA that is easy to remember, avoid sharing your personal VPA with unknown individuals, and make sure to know the transaction limits. Lastly, UPI-based transactions offer an easy and convenient method of payment that eliminates the need to disclose sensitive bank account details.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.