What is VPA in UPI Payments? All you need to know about its benefits

  • Published on: 21 Dec 2023
What is VPA in UPI Payments? All you need to know about its benefits

Virtual Payment Address (VPA) in UPI or Unified Payments Interface is a unique identifier in the system that bypasses the need for bank account numbers and bank IFSC. UPI provides this simplified, quick and universal payment experience using VPAs. You can use VPA to send or receive money, make bill payments and initiate merchant payments.

To learn more about VPA in payment, how it works, its benefits and more, read on.

What is VPA in UPI Payment?

If you are new to UPI, you may wonder, ‘What is VPA in UPI payments?’ Here’s what you need to know. The Unified Payments Interface (UPI) is a digital payment system created by NPCI (National Payments Corporation of India). It allows users to transfer money from one bank account to another instantly using mobile devices. 

VPA in UPI is a unique ID attached to a user, which helps track a person’s UPI account. To execute an online transfer, you need your Virtual Payment Address (VPA) along with the beneficiary details to whom you want to send money through a third-party UPI application. Using VPA in payment, you don’t need to enter bank account details every time you transact.

A VPA typically looks like xyz@bankname, where the first part can be anything from your name’s initials or a registered mobile number. The ‘bank name’ can be the name of the bank with whom you have an account, the bank with which the UPI app is associated, or just the word ‘UPI.’   

How to Create VPA for UPI Payment

Now that you have understood what is UPI VPA, it is also necessary to understand how you can create this unique ID:

  • Step 1: Download and open third-party UPI app on your mobile device
  • Step 2: Enter the mobile number registered with your bank account
  • Step 3: Verify your identity by entering the OTP received on your registered contact number
  • Step 4: Tap on the ‘Add New UPI ID’ option to set up a new VPA for UPI
  • Step 5: Enter and choose a unique username for the first part of your VPA, i.e., the part that appears before the ‘@’ symbol
  • Step 6: Click on the ‘Submit’ button to confirm your VPA

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How VPA for UPI Payments Works

Once you have set the unique ID, you can use VPA in payments through a third-party application to merchants, contacts, or any other person with a UPI ID. You need to follow these steps to send money using a VPA on the UPI application:

  • Step 1: Open the UPI application and tap on the ‘Pay Using UPI’ option
  • Step 2: Enter the receiver’s VPA and confirm if it is linked to the person to whom you wish to send the money
  • Step 3: Choose the VPA for making the payment if you have multiple UPI IDs
  • Step 4: Enter your MPIN and confirm the payment to send money to a receiver

Here is how you can use your VPA ID to receive money:

  • Step 1: Open the UPI application on your mobile device and choose the ‘Receive Via UPI’ option
  • Step 2: Enter the VPA of the person from whom you wish to receive funds
  • Step 3: Add the amount you wish to request
  • Step 4: Choose a VPA when you want the sender to send money if you have multiple UPI IDs
  • Step 5: Confirm sending the request and wait for the sender to approve the transaction

Also Read: How To Create Upi Id and Do Upi Registration?

Benefits of VPA in UPI Payments

The use of VPA for UPI payments has several advantages, which have helped this digital system to grow gradually in India. These include:

Cost-effective Option

As UPI payments don’t charge any transaction fees, it is a cost-effective way to pay a person or merchant digitally.

Secure Payment Method

VPA eliminates the need to share sensitive bank details like bank account number and IFSC. Since you can share VPA linked with your bank account, it makes online transactions much safer. 

Fast Processing

UPI transactions initiated via VPA provide a real-time processing facility, which means you can send or receive money almost instantly. 

Convenient to Use 

Using VPA for UPI payments is quite easy and simple, as you only have to get the receiver’s UPI ID or send your UPI ID to receive payments. Moreover, you can carry out these transactions using a mobile device, making it more accessible. 

UPI now also allows users to link their credit cards with VPA ID to facilitate online transactions. You can also add the Fibe Axis Bank Credit Card to your third-party UPI app for quicker payment. It is India’s first numberless credit card to ensure higher security when you make transactions. In addition, it is a lifetime free card that provides cashback of up to 3% on every transaction. Download the Fibe Loan App or register on our website to apply for this card.

FAQs on What is VPA in UPI Payments

How do I find my UPI VPA?

To find your VPA for UPI payment, you need to open the third-party UPI application and tap on the ‘Profile’ section. Tap the ‘Bank Account’ section and choose the bank account whose VPA you want to check. You’ll see the UPI ID linked with that bank account on your phone’s screen.

Is VPA and UPI ID same?

Yes, VPA and UPI ID are similar terms used interchangeably.


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