Understanding VPA in UPI: A Guide to Creating VPA on UPI Apps

The complete form of UPI ID, also known as VPA (Virtual Payment Address), is a distinctive identifier generated by users for seamless money transactions through UPI. By sharing their UPI VPA ID, individuals can effortlessly send or receive payments directly to their linked bank accounts. Presently, UPI can be linked exclusively with bank accounts and debit cards, with the potential extension to credit cards anticipated in the near future. It is advised to transfer funds using the UPI VPA rather than a mobile number to mitigate the risk of inputting incorrect information.

This blog provides in-depth information on VPA and its functionality. Let’s explore!

VPA in UPI Payment Systems: Understanding the Basics

A Virtual Payment Address (VPA) serves as a distinct identifier, enabling users to send or receive money through UPI. Widely favored among individuals and merchants, it stands out as a sought-after payment method. The NPCI has set the UPI transaction limit at Rs. 1 Lakh with a cap of 20 transactions per day. Additionally, the introduction of UPI autopay facilitates recurring payments such as electricity bills and EMI payments.

Creating Your VPA in UPI

To generate a VPA ID, adhere to the uncomplicated steps outlined beneath:

Step 1: Initiate the process by downloading a UPI-enabled application:
To delve into UPI transactions and establish a VPA, commence by downloading applications that support UPI, such as PhonePe, Paytm, BHIM, or GooglePay. These applications cater to both Android and Apple devices.

Step 2: Input your Bank Account Details:
Ensure that your mobile number is seamlessly linked to all your bank accounts to set up a VPA username effectively.

Step 3: Choose a VPA:
Within the UPI system, a VPA typically takes the form of xyz@bankname, allowing for customization (where “xyz” can be personalized) to facilitate easy memorization.

Step 4: Associate VPA with Bank Account:
Connect your bank accounts to the VPA ID, facilitating the linking of multiple bank accounts within a single UPI-enabled app. This simplifies the process of transferring money across various banks. With the provision of a distinctive VPA, instantaneous approval is granted, providing you with a Virtual Permanent Address.

Step 5: Complete Verification Details:
Establish your unique authentication PIN to verify transactions within the app. This involves a two-step authentication process, with the first step occurring during app login and the second during fund transfers.

Creating a VPA in Google Pay

1. Begin by downloading the Google Pay app onto your device.
2. Open the application, and provide your mobile number to commence the creation of a UPI ID.
3. Select the appropriate bank linked to your mobile number.
4. Anticipate receiving an OTP via SMS or email for verification.
5. Input the received OTP to finalize the verification process and generate your UPI ID (VPA). Google Pay often generates one automatically, utilizing the user’s Gmail ID.
6. Now that your UPI ID is set up, you can seamlessly participate in UPI transactions.

Creating a VPA in Paytm

1. Begin by downloading the Paytm app on your device.
2. Register for a new account and link it to Paytm UPI by entering your phone number.
3. Choose your bank account from the available options.
4. The app will automatically identify the bank account linked to the mobile number used during registration.
5. Expect to receive an OTP via SMS or email for verification.
6. Input the OTP to finalize the verification process and create your unique UPI ID.
7. You have the flexibility to generate additional UPI IDs using the same straightforward procedure.

Creating a VPA in PhonePe

1. Begin by downloading the PhonePe app on your device.
2. Input the mobile number linked to your bank account.
3. Expect to receive an OTP via SMS.
4. Once the OTP is verified, your PhonePe account should be successfully created.
5. From the list presented, choose your bank.
6. The app will request to send an SMS to locate your bank account associated with the provided mobile number. Click ‘Continue’ to proceed.
7. Following that, enter your desired VPA, and you’re all set to start using PhonePe.

How to Send Funds via VPA

Utilizing VPA for payments involves the following steps:

Step 1: Access your UPI app and log in using your PIN.

Step 2: Opt for UPI as your desired method for fund transfers.

Step 3: Input the beneficiary’s VPA, the transfer amount, and any additional comments.

Step 4: If you possess multiple VPAs, choose the one linked to the desired bank account and click Submit.

Step 5: Confirm the details, and to authenticate, enter your MPIN.

Receiving Funds with VPA

Facilitating hassle-free transactions, one can utilize a Virtual Payment Address (VPA) in UPI to receive money. Here’s a step-by-step guide:

Step 1: Install and log in to any UPI-enabled mobile app.

Step 2: Opt for UPI and select ‘Collect via UPI.’

Step 3: Input the VPA address of the individual from whom you are requesting funds.

Step 4: Specify the requested amount and add any necessary comments.

Step 5: Choose the VPA address or account where you want the funds to be directed.

Step 6: Transmit the required information and await a response.

Upon approval from the person you are requesting money from, the funds will be credited to the designated account.

How VPA in UPI Transactions Works

Utilizing UPI VPA streamlines the daily UPI process for widespread accessibility. The simplicity of digital payments has prompted a shift towards this mode of transaction. As mentioned earlier, multiple VPA UPI apps cater to transaction needs. Upon launching these apps, the initial step involves verification. Upon navigating to the app, a new payment option becomes visible. Transferring funds can be executed via bank transfer, phone number, UPI ID, or QR code. Opting for UPI ID, users are prompted to input their UPI ID or open the code scanner, commonly employed by merchants for quick transactions. Following the entry of UPI ID and clicking on continue, the second verification step emerges. By entering the verification PIN, the status of the transaction is swiftly revealed. Detailed transaction records are maintained, allowing users to track all payments made through VPA.

Advantages of VPA in UPI Transactions

Unlocking the Advantages of VPA in UPI Transactions

1. Effortless Registration: Registering a VPA username is a breeze for both payers and payees, offering a seamless experience in entering the username and swiftly completing payments. The prevalent use of UPI among small vendors underscores its widespread appeal in the Indian market.
2. Continuous Accessibility: VPA in UPI stands out for its non-stop payment capabilities, allowing transactions 24/7 from any location with a reliable internet connection. Users need only be mindful of the daily transaction limit.
3. Promoting a Cashless Economy: In contrast to platforms that direct funds to wallets, UPI maintains funds securely in bank accounts, fostering interest accrual and contributing to the national goal of a cashless India.
4. Robust Security Protocols: VPA UPI ensures funds transfer only upon entering the designated PIN during setup, mitigating the risks associated with duplicating debit or credit card transactions.
5. Integration of Multiple Bank Accounts: Each UPI platform accommodates multiple bank accounts, each with its distinctive VPA username. This feature simplifies payments from any bank in a single step, enhancing overall user convenience.
6. Universal Acceptance: VPA in UPI proves invaluable in situations where individuals may forget their debit or credit cards, offering a swift mobile payment alternative for various transactions.
7. Time-saving Efficiency: VPA eliminates the time-consuming process of entering extensive beneficiary details during online payments, reducing the risk of errors by requiring only the UPI username.
8. Uniform Account Holder Identification: VPA UPI maintains a consistent account holder name for all transactions, facilitating centralized record-keeping for seamless tracking and organization.

Exploring VPA Types in UPI

Unveiling the Dynamic Facets of VPA in UPI: A Dive into Distinctive Applications

Person to Person (P2P):

• Interpretation: This category involves the effortless transfer of funds between individuals, exemplified by the straightforward process of sending money to friends, family, or any individual through a UPI-enabled app.

P2M – Person to Merchant:

• Overview: In this scenario, banks generate VPA in UPI for registered merchants, enabling individuals to seamlessly transfer funds during purchases. The process involves scanning the merchant’s QR code, providing a swift and secure payment method widely embraced by merchants of varying business scales in India.

P2M-V – Virtual Person to Merchant:

• Insight: This distinctive mode entails creating a virtual account by mapping an existing P2M VPA to multiple VPAs. Users can assign a unique VPA for UPI to each person making a payment, facilitating notifications through messages or WhatsApp with their personalized VPA ID. This approach ensures an organized and efficient handling of payments from diverse sources.

Consider a telecommunications company managing monthly or quarterly service charges. An efficient approach involves assigning a unique VPA to each customer. As their payment deadline approaches, personalized UPI IDs can be conveyed through messages, WhatsApp, or email. Upon successful payment, instant notifications through webhooks ensure real-time updates for seamless tracking and management.

Understanding VPA Suffixes in Popular Banks

Reordering and rephrasing the list:

1. PNB UPI: Utilize @PNB for transactions.
2. SBI Pay: Conduct transactions seamlessly with @SBI.
3. BHIM: Simplify payments using @upi.
4. HDFC Bank UPI: Opt for @HDFC to streamline your UPI transactions.
5. Axis Bank: Experience hassle-free banking with @axis.
6. Paytm Payment Bank: Navigate transactions conveniently through @paytm.
7. Bank of Baroda: Access quick payments using @barodapay.
8. Yes Bank: Choose @YBL for efficient UPI transactions.
9. Google Pay (Tez): Suffixes vary based on your respective bank affiliation.

Conclusion

In the realm of banking, VPA stands for Virtual Permanent Address, a pivotal element in the landscape of digital payments. It serves as a unique payment address facilitating seamless fund transfers through UPI platforms. VPA in UPI marks a significant stride in expediting transactions, ensuring they are not only swift but also secure. With a plethora of UPI platform choices available, users can opt for one or multiple options tailored to their daily needs. Armed with a reliable internet connection and a registered merchant for VPA, users can execute payments conveniently from any location. While Virtual Permanent Address (VPA) plays a crucial role in mitigating fraud linked to debit/credit card duplications, it is imperative for users to remain vigilant, as financial frauds persist and necessitate proactive awareness.

VPA in UPI FAQs

How can I disable or block a VPA on UPI?

To deactivate a specific VPA, you have two straightforward options: either access the UPI app and disable the desired VPA directly, or opt for the net banking platform to accomplish the same task.

What is the procedure for making changes in UPI?

To make changes, simply access the settings within the UPI app, where you can find options to either edit or modify the required information.

How secure is it to input your bank details into the UPI app?

Executing transactions through a UPI-enabled app is secure as long as the user’s PIN remains confidential.

Does my VPA expire or become inactive if left unused?

No, your VPA will not lapse or become inactive even if you refrain from using it for a year.

Is additional bank account information required when utilizing VPA?

No, using VPA alone is sufficient for transferring funds from one individual to another.

What is the process for locating your VPA?

To find your Virtual Payment Address (VPA), you can inquire with the bank, e-wallets, or payment apps with which you have registered. Another method is to log in to your online banking account, where you may locate the VPA. Additionally, you can check the account section of your e-wallets or payment apps to find your VPA.

Is there a distinction between VPA and UPI ID, or are they synonymous?

Yes, VPA and UPI ID are synonymous terms. VPA essentially refers to a UPI ID that facilitates the sending and/or receiving of money through the UPI platform.