India Payments Science: what is a virtual payment address for UPI?www.deekpay.com

Over the past few years.UPI paymentsachieved significant growth with over 12 billion transactions worth Rs 18.23 billion in 2023. WithDigital payments in Indiabecame more common and the use of cash declined sharply.

A key reason for this change is the widespread use of Virtual Payment Addresses (VPAs), making digital transactions easier than ever.

What is VPA in UPI

The full name of VPA is Virtual Payment Address. In India, a Virtual Payment Address (VPA) isUPI The unique ID used in the system allows you to send and receive payments instantly using your mobile phone.

A VPA is a mixture of letters, numbers and special characters. Your VPA acts as a virtual identity for your bank account. This means you can make transactions without having to share your account number or IFSC code.

With a virtual payment address, you don't have to enter your bank account details every time you make a payment. Typically, a VPA is of the form xyz@bankname. the UPI application you use will usually have a primary default VPA set.

The "xyz" part can be anything, such as your registered phone number, your name or a similar identifier. The "bank name" can be the associated bank of the application, your bank name or simply "upi".

Some VPA examples are "yourname@idfcbank", "yourname25@upi", or "6290209786@yesg ". Alternatively, you can create a VPA that suits you and check if your preferred VPA is available.

How VPA works

The following is a step-by-step process of how the VPA works:

Step 1: Create VPA

First, you need to register with your preferred bank or UPI-enabled payment service provider. During registration, select a unique VPA, usually in the format "username@payment provider" or "username@bank".

Step 2: Link your bank account

After creating your VPA, link it to your bank account. This involves linking your VPA to your bank account. Once linked, your VPA will act as an address to which funds can be sent or received.

Step 3: Conduct the transaction

When you want to make a payment or transfer money using UPI, provide your VPA address, not your bank account details. The person sending you money simply enters your VPA, specifies the amount and authorises the transaction via a UPI-enabled app.

Step 4: Transfer of funds

The UPI system validates payments made using a VPA and transfers them to the bank account associated with that VPA. It immediately transfers money between the bank accounts of the payer and the payee.

How to create a VPA

Follow the steps below to learn how to create your own unique VPA ID:

Step 1: Install the UPI app on your mobile phone. It can be a mobile banking app with UPI payment option or a third party UPI app.

Step 2: Link your bank account by providing the phone number you registered with your bank.

Step 3: Next, provide the required details and you will be given the opportunity to register with VPA orUPI ID Choose between the options.

Step 4: Select your preferred option or create your own VPA ID.

Step 5: After creating an account, generate a four or six digit UPI PIN.

Once the PIN is set, UPI transactions can be initiated with just a few clicks.

How to send money using VPA

Follow the steps listed below to send money through UPI:

Step 1: Log in to your UPI-linked application.

Step 2: Select the "Transfer via UPI" option.

Step 3: Provide the payee's VPA, the amount you are transferring, and any notes (if applicable).

Step 4: Select the VPA associated with your bank account and verify the details.

Step 5: Enter your MPIN to complete the transaction.

Your transaction is now complete and the payee will receive your payment via VPA immediately.

How to collect through VPA

Here are the steps you need to follow to collect through UPI:

Step 1: Log in to your UPI-based mobile application account.

Step 2: Under "UPI", select "Collect via UPI".

Step 3: Enter the VPA address of the payee you are requesting.

Step 4: Specify the amount you want and add any notes.

Step 5: Select the VPA address or account to which you want to send the money.

Step 6: Submit these details and wait for approval.

Once the other party approves, the amount will be credited to the account of your choice.

Advantages of VPA

Here are some of the features and benefits of a virtual payment address:

Enhanced Security

Transactions are faster, safer and more convenient with UPI. With VPA, you can send or receive payments instantly, in real time, faster than RTGS maybe NEFT Traditional methods of transferring funds, such as the

changeable

You have the flexibility to change VPAs and use new VPAs; however, once a bank account is associated with a VPA, it cannot be changed or deleted, and a bank account cannot be associated with more than one VPA.

24/7 access

You can access your account details 24/7 using the UPI app or the VPA on any UPI-enabled platform. This makes it easy for you to check balances, view transaction history and process funds when needed.

Transaction tracking

Having a VPA makes it easy to track fund transfer transactions within the UPI application, providing details such as the amount sent, date and time of the transaction, payee information and other relevant data.

easy remember

VPAs are easier to remember than long and complicated bank account numbers. They are considered secure and easy to remember, making them more user-friendly.

concluding remarks

Understanding what VPA in UPI is can dramatically enhance the user's digital payment experience.VPA is easy to set up, easy to use, and provides enhanced security with faster and more convenient user transactions.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.