VPA, or Virtual Payment Address, is a crucial part of the UPI system that facilitates easy and secure digital transactions without sharing bank details. It functions like a unique address, allowing users to create their UPI ID in just a few minutes and instantly send or receive money.
VPA in UPI: The pace of digital payments in India is constantly increasing, and VPA (Virtual Payment Address) plays a crucial role in this. It is a unique digital address that enables secure transactions by concealing your bank details. A VPA can be created in minutes through apps like Google Pay, PhonePe, Paytm, or BHIM. Through this, it's possible to send or receive money to anyone without entering an account number or IFSC code. This system is not only fast but also provides protection against fraud and data leaks.
What is VPA and How Does it Work?
A VPA (Virtual Payment Address) is a unique digital address that facilitates transactions by hiding your bank information. Similar to an email ID, your UPI ID or VPA looks something like this — name@bankname or mobilenumber@upi. Using this address, you can send or receive money to anyone without sharing your bank account number or IFSC code.
When you create an account on a UPI app like Google Pay, PhonePe, Paytm, or BHIM, the first step is to set up a VPA. After this, anyone who wishes to send you money can directly transfer the amount to your bank account using your VPA ID. This process remains completely secure through the servers of NPCI (National Payments Corporation of India).
How to Create a VPA
The process of creating a VPA is very simple and only requires a UPI app.
- Download a trusted UPI app (like Google Pay, PhonePe, or Paytm) on your mobile.
- Open the app and click on 'Add Bank Account' or 'Create UPI ID'.
- Link your bank account and choose your preferred UPI ID, such as yourname@okaxis or 9876543210@paytm.
- Set a secure UPI PIN, and your VPA will be ready.
This entire process is completed in just a few minutes, and after that, you can make payments without sharing any bank details.
Why is VPA Important and What are its Benefits?
The biggest advantage of VPA is security. It keeps your financial information, such as bank account numbers and IFSC codes, hidden. This significantly reduces the risk of online fraud or data theft.
Additionally, VPA makes the payment process fast and easy. There's no need to enter card numbers, nor the hassle of OTPs. Once a VPA is set up, money can be instantly sent or received by simply entering the UPI PIN. This not only saves time but also instills confidence in users regarding digital transactions.
The Growing Pace of Digital Payments in India
According to NPCI data, billions of rupees are transacted every month through UPI in India. This mobile payment revolution has proven convenient for everyone, from small traders to large businesses.
With the help of VPA, adopting digital transactions has become easier from villages to cities, propelling India forward towards a cashless economy.
