What is Virtual Payment Address & How to Create it?

A Virtual Payment Address (VPA) is a unique identifier linked to an individual’s bank account, facilitating transactions through the Unified Payment Interface (UPI) without needing additional bank details.

Creating a Virtual Payment Address

To create a VPA, follow these steps within a UPI app:

1. Download and Install: Download the UPI app and link it to your bank account via the mobile number registered with the bank.
2. Mobile Verification: The initial step involves verifying your mobile number, followed by answering a security question.
3. Create VPA: After authentication, create a VPA for the linked account. You can choose your VPA if it’s available, or provide an alternative if it’s not. Once selected, the VPA is instantly approved, giving you a unique virtual payment address.

Sending and Receiving Money Using VPA

Sending Money

VPAs and UPI apps have streamlined money transfers significantly. To send money using a VPA:

1. Login: Access your UPI app.
2. Select Transfer: Choose the fund transfer option via UPI.
3. Enter Details: Input the recipient’s VPA and the amount to transfer.
4. Multiple VPAs: If you have multiple VPAs, select the one linked to the account you wish to use.
5. Confirm and Validate: Verify the details and enter your MPIN to complete the transaction.

Receiving Money

To receive money via VPA, follow these steps:

1. Login: Open your UPI app.
2. Collect via UPI: Select the UPI option and click on “Collect via UPI.”
3. Request Details: Enter the VPA of the person from whom you’re requesting money, specify the amount, and choose the VPA account where you want the money deposited.
4. Submit and Await Approval: Submit the details and wait for the other party’s approval. Once approved, the amount is credited to your designated account.

Conclusion

The evolution from traditional payment methods to online transactions has revolutionized how we handle money. With UPI and VPAs, money transfers can be done 24/7, even on weekends and bank holidays, without the need for beneficiary registration, IFSC codes, or bank account numbers. The process requires only a 6-digit PIN, making it the most user-friendly, quick, and convenient method to transfer money today.