UPI ID or VPA full form (Virtual Payment Address) is a unique ID created by the user to send or receive money through UPI. The user can simply share his/her UPI VPA ID with the payer and receive payment directly in his/her bank account. Currently, users can only link UPI with bank accounts and debit cards. While the proposal of linking it with credit cards has been there, we can see it happening in the near future. Transferring funds to the VPA of UPI and not mobile number as there is always the risk of entering it wrong.
This blog gives detailed insights about VPA and its working. Let’s dive in!
A Virtual Payment Address (VPA) is a unique ID using which they can either receive or send money through UPI. This is the most sought-after model of payment among individuals or even merchants. The NPCI has defined the UPI transaction limit as Rs. 1 Lakh and 20 transactions per day. They introduced UPI autopay for recurring payments like electricity bills, EMI bills, etc.
In order to create VPA ID follow the simple steps below:
Download the Google Pay app
Launch the app on your phone, and then enter your mobile number to create a UPI ID.
Select your concerned bank linked to your mobile number
Next, you will receive an OTP via SMS or email for verification
Enter the OTP for verification then create your UPI ID (VPA), though Google Pay generally creates one by default on the basis of the user’s Gmail ID
Once UPI ID is created, you can transact with UPI
One can use VPA for payment in the following ways:
To receive money one can use a Virtual Payment Address in UPI for hassle-free transactions.
The sum is credited to the account of your choice once it has been approved by the person from whom you are asking the money.
UPI VPA simplifies the UPI Process for everyone to use on a daily basis. People are shifting to digital payments because the process is simple. As we previously discussed, you can use any of the VPA UPI apps that are available for use in the transaction. When you open them, it will prompt you to enter the first step of verification. This will direct you to the app, where you will see a new payment option. Money can be transferred through a bank transfer, a phone number, a UPI ID, or a QR code. You must click on UPI ID, which prompts you to either enter your UPI ID or open the code scanner. Merchants commonly use code scanners, which allow customers to scan and pay quickly. The second verification step appears after entering the UPI ID and clicking on continue. Enter the verification Pin, and you’ll see whether or not the money has been transferred in a matter of seconds. You can keep track of all the payments you made using VPA.
The Virtual Permanent Address VPA in payment can be dissected into three categories:
Peer 2 Peer is where you transfer funds from one individual to another. The best example would be transferring money to your friends, family, or any individual through the UPI-enabled app.
In this mode, the VPA in UPI is created by banks by registering the merchant who helps an individual to transfer funds to a merchant. This can be best used while purchasing any goods, and while paying, we can scan the QR code of the merchant and make the payment. In India, many merchants use this mode irrespective of the business size.
In this mode, we can see that a virtual account is created when an already existing P2M VPA is mapped to numerous VPAs. In this, you can assign a VPA for UPI to unique each person who is supposed to make a payment to you. You can then send them reminders on message/WhatsApp with their unique VPA ID, and once they make that payment, you will receive a notification.
The best example could be a telecommunication company that needs to collect monthly or quarterly charges for their service. You can assign a VPA unique to each customer and send them a UPI ID through message/Whatsapp or even email when their payment is due. When they make the payment, you will be notified via webhooks.
VPA full form in banking is a virtual permanent address. It is a payment address that helps users transfer funds using UPI platforms. VPA in UPI is a huge step toward making transactions faster, quicker, and more secure. There are plenty of UPI platform options in the market, and users can choose one or more for their daily use. With a stable internet connection and a registered merchant for VPA, you can make payments anywhere. Though Virtual Permanent Address (VPA) reduces the fraud which happens with duplication of debit/credit cards, there are still finance frauds happening, which can be tackled only by being vigilant.
You can simply open the UPI app and disable that particular VPA, or you can use net banking for the same.
You can open the UPI app and either edit or change which can be found under settings.
It is secure to perform transactions through UPI enabled app until the PIN of the user is kept confidential.
No, your VPA won’t get lapsed even if you don’t use it for a year.
No, VPA is enough to transfer the funds from one individual to another.
Check with the bank, e-wallets, or payment apps with which you have registered to find your VPA. To locate your VPA, log in to your online banking account. You can also find the VPA in the account section of your e-wallets or payment apps.
Yes, VPA and UPI ID are the same thing. VPA is essentially a UPI ID that can be used to send and/or receive money through UPI.
Before you go…
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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