What is VPA in UPI? – Virtual Payment Address

In this article, we will talk about what is VPA in UPI?, why we need VPA? and how you can use it for your money transaction.

UPI or the universal payment interface is an advanced way of payment like India’s version of Paypal.

It allows the digital transfer of money from one bank account to another, without the need to use physical cards or cash.

To enjoy the benefits of this system, you need to register for an upi id and link your bank accounts with it.

What is UPI?

The UPI or universal payment interface is a payment system launched by NPCI or National Payments Corporation of India.

It works on IMPS (immediate payment service), which allows users to make instant bank-to-bank money transfers without having a credit/debit card.

The IMPS makes it easy for both sending and receiving of money without having to fill up forms, enter account numbers and other related details each time you need to transfer money from your account.

To use BHIM app as well as other third party apps such as PayTM, SBI Pay, PhonePe, googlepay etc., you will have to create an account using your mobile number and activate an USSD code that was sent to your phone.

The after creating the account your UPI Id or VPA get created or you can create by you own in UPI application.

Read More: What Is UPI Id? – Unified Payment Interface (UPI)

Why UPI?

UPI has become the most common mode of payment in the last few years, replacing cash and even cards.

Transactions via UPI, or Unified Payment Interface, are widely preferred due to their benefits. Here are some reasons why UPI payments are on the rise.

  • UPI is absolutely safe, so if you don’t want your money at risk, you should be using it.
  • Online payments with UPI are easy to use and free for everyone
  • You can use UPI to pay off bills and purchase products from e-commerce sites like Amazon.
  • Using UPI, you can pay at departmental stores, pharmacies, etc., by scanning QR codes.
  • You can also earn discount vouchers, cash back, and other rewards by regularly paying through UPI

What is VPA?

VPA stands for Virtual Payment Address, a string of alphanumeric characters which represents your bank account.

Your bank will provide you with one or more VPAs that you can use to receive money from any person who has your number.

The way it works is when someone sends money to one of these VPAs from his/her bank account, it’s not going to be directly credited to your account.

Through UPI, you can send and/or receive money in your bank account using a VPA and UPI payments require a VPA, just like credit/debit card payments.

How to Create VPA?

What is VPA in UPI? - Virtual Payment Address

As of today, there are two ways to create a virtual payment address for making payments via your bank account. Let’s see how to do it step by step.

1) You can download BHIM app from Google Play Store or App Store and then register yourself with your mobile number and email id.

2) After you have downloaded BHIM app on your phone, you will be required to enter details like name and mobile number. Enter all these details correctly as they will be used as reference while transferring money through UPI platform.

3) After entering all details successfully, you will receive an OTP (one time password). Verify that OTP and proceed further.

4) Now comes the most important part i.e., creating VPA (virtual payment address). Here you need to select Pay to Bank Account option after which click on + Add New Bank Account option.

5) On clicking on + Add New Bank Account option, you will get a list of banks available in your location. Select any one bank from that list and enter details such as IFSC code, MICR code and other details asked by the app.

6) After completing all steps above, you will get your VPA registered successfully.

7) Now whenever you want to make any payment using UPI platform just use your registered VPA instead of using physical debit card or credit card.

Top Benefits of VPA

1) The biggest benefit of using a Virtual Payment Address (VPA) is that you don’t need to share your bank details with any merchant or service provider.

2) You just need to enter your VPA and amount on their app, website, or POS machine. The money will be automatically debited from your bank account and transferred to theirs within seconds.

3) You don’t need to perform the lengthy process of adding a beneficiary account number to send the money, just by adding VPA you can send the money in one step.

4) You can transfer money easily to someone who doesn’t have a bank account. He or she can open a new bank account within 2 minutes and receive your money instantly.


In short, a Virtual Payment Address or VPA is an address that you can create on your phone and use it to make payments through UPI.

It’s not a physical card but simply an address. You can create as many VPAs as you want on your phone and each of them will have its own unique set of credentials.

One needs to be careful when creating one as anyone with access to your VPA will be able to make money transfers through it without having your device.

However, there are ways to secure your VPAs such as by enabling two-factor authentication for all transactions.

The best way to learn about how UPI works is by trying out yourself by downloading BHIM app from Play Store or App store.

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