Virtual Payment Address (VPA)

A Virtual Payment Address (VPA) is a unique identifier created to send and receive payments digitally through the Unified Payments Interface (UPI) in India. It serves as a simple, secure alternative to sharing sensitive banking details, such as account numbers or IFSC codes. Users can create a VPA via UPI-enabled apps like Google Pay, PhonePe, and BHIM to facilitate seamless money transfers. This system enhances security, convenience, and efficiency in managing peer-to-peer or business transactions in real time.

Table of Contents:

• ⇾ Structure of Virtual Payment Address (VPA)
• ⇾ VPA Suffixes of Top Banks and UPI Apps
• ⇾ Transaction Process of Virtual Payment Address (VPA)
• ⇾ Steps to Create a Virtual Payment Address (VPA)
• ⇾ Steps to Send Money Through VPA
• ⇾ Steps to Receive Money Through VPA
• ⇾ Benefits of Virtual Payment Address (VPA)
• ⇾ UPI AutoPay
• ⇾ Transaction Limit of Top UPI Apps
• ⇾ Frequently Asked Questions

VPA Full Form

VPA stands for ‘Virtual Payment Address’.

Structure of Virtual Payment Address (VPA)

A Virtual Payment Address (VPA) follows a specific format that simplifies transactions through UPI. It consists of two main parts: a user-chosen identifier and the bank or UPI app’s suffix. This structure ensures ease of recognition and security during digital payments.

VPA Example:

Say there is a VPA efgh@abcbank, the username ‘efgh’ can be a user’s name, email prefix, or phone number, and ‘abcbank’ represents the bank or app to which the VPA is linked. For example, ravi@hdfcbank can be a VPA.

Quick Tip!

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VPA Suffixes of Top Banks & UPI Apps

Different banks and UPI apps in India use unique suffixes for Virtual Payment Addresses (VPAs) to help identify the service provider during transactions. These suffixes are appended to the VPA, making it easy to recognize the bank or app handling the payment.

Here's a detailed list of VPA suffixes used by top banks and popular UPI apps.

VPA Suffixes of Leading Banks

VPA Suffixes of UPI Apps & Payments Banks

Transaction Process with Virtual Payment Address (VPA)

A Virtual Payment Address (VPA) streamlines the process of sending and receiving payments through UPI by providing a secure, user-friendly alternative to sharing sensitive banking details.

Here's a step-by-step process of how VPA operates, from creation to transaction completion.

1. Create a VPA: The user registers with a UPI-enabled app (e.g., Google Pay, PhonePe) and creates a unique VPA linked to their bank account.
2. Link VPA to Bank Account: The VPA is connected to the user’s bank account through the UPI system, eliminating the need to share sensitive details like account numbers or IFSC codes.
3. Initiate Transaction: The user inputs the recipient’s VPA and the payment amount within the UPI app to send money or shares their VPA to receive payments.
4. Authentication: The UPI system verifies the VPA and prompts the user to authenticate the transaction by entering their UPI PIN.
5. Process Transaction: Upon successful authentication, the UPI system instantly transfers the funds from the sender's bank account to the recipient's account.
6. Transaction Confirmation: Both the sender and receiver receive real-time confirmation of the transaction, ensuring that funds have been successfully transferred.
7. Maintain Security: Throughout the process, sensitive account details remain masked, ensuring the security and privacy of the transaction.

Steps to Create a Virtual Payment Address (VPA)

Creating a Virtual Payment Address (VPA) is a simple and secure process that allows you to send and receive money seamlessly through UPI-enabled apps. Follow these steps to set up your VPA and link it to your bank account for convenient transactions.

Step 1: Download and install a UPI app on your mobile device. You can choose either a mobile banking app with UPI payment functionality or a third-party UPI app.

Step 2: Link your bank account by entering the phone number associated with your bank account.

Step 3: Provide the necessary details, and you'll be given the option to choose between a VPA or UPI ID.

Step 4: Create your own VPA ID or select a preferred option from the choices provided.

Step 5: Once your account is set up, create a four- or six-digit UPI PIN.

Step 6: After setting your PIN, you'll be ready to make UPI transactions with ease.

Steps to Send Money Through VPA

Using any UPI-enabled app, you can follow a few simple steps to quickly send money to the recipient’s VPA. Here are the steps:

Step 1: Log into your UPI-linked app.

Step 2: Select the 'Fund Transfer via UPI' option.

Step 3: Enter the recipient's VPA, the amount to transfer, and any remarks if necessary.

Step 4: Choose the VPA linked to your bank account and confirm the details.

Step 5: Finalize the transaction by entering your MPIN.

The transaction is now complete, and the recipient will instantly receive the transferred amount through VPA.

Steps to Receive Money Through VPA

You can easily request payments and receive money directly into your bank account without disclosing your account details. Here is how:

Step 1: Log into your UPI-based mobile app account.

Step 2: Navigate to the 'UPI' section and select 'Collect via UPI'.

Step 3: Input the VPA of the person from whom you are requesting the payment.

Step 4: Specify the desired amount and include any remarks if needed.

Step 5: Choose the VPA or account where you want the funds to be credited.

Step 6: Submit the request and wait for the other person’s approval.

Step 7: Once they approve the request, the specified amount will be credited to your selected account.

Benefits of Virtual Payment Address (VPA)

Virtual Payment Address (VPA) offers several advantages, making it a popular choice for secure and efficient digital payments through the UPI platform. Below is a detailed explanation of the key benefits:

1. Enhanced Security: With VPA, users no longer need to share sensitive bank details such as account numbers or IFSC codes. Instead, transactions are conducted using the VPA, which provides an additional layer of privacy and security, reducing the risk of fraud or unauthorized access to financial information.
2. Convenience: Creating and using a VPA is simple and user-friendly. VPAs are easy to remember and can be customized, making them more accessible for frequent transactions. The ability to initiate payments using just a VPA streamlines the process of sending or receiving money.
3. Real-Time Processing: One of the biggest benefits of using a VPA through UPI is that transactions are processed instantly, regardless of the time or day. This 24/7 availability makes it a reliable tool for both personal and business transactions, without any delays.
4. Interoperability: VPAs are not restricted to a single bank or UPI app. Users can conduct transactions across different banks and UPI platforms without any compatibility issues, providing flexibility and wide accessibility across various financial institutions.
5. Cost-Efficiency: UPI payments, including those made through VPA, are typically free of cost, making them a more economical option compared to traditional banking methods like NEFT or RTGS, which may incur fees for fund transfers.
6. Multiple Accounts: A user can create multiple VPAs linked to different bank accounts, allowing them to easily manage and distinguish between personal and business transactions. This flexibility makes financial management more efficient and organized.

UPI AutoPay

UPI AutoPay is a feature that allows users to automate recurring payments, such as subscriptions or utility bills, using their VPA. With AutoPay, customers can set mandates to authorize payments automatically at specified intervals, reducing the need for manual approvals for every transaction. This feature is useful for services like insurance premiums, loan EMIs, and OTT subscriptions, ensuring timely payments without missing deadlines.

Did you know about the new UPI feature - UPI Circle. Know more from the linked page.

Transaction Limit of Top UPI Apps

Each UPI app in India comes with specific transaction limits to ensure the security and smooth functioning of digital payments. Below is a comparison of the daily transaction limits, per transaction caps, and the maximum number of transactions allowed per day for some of the top UPI apps in India, including Google Pay, PhonePe, and BHIM App.

Let’s go through the UPI transaction limits for Google Pay, PhonePe, BHIM App from below:

Virtual Payment Address - VPA & UPI ID

VPA and UPI ID are essentially the same thing. VPA is a technical term, whereas UPI ID is a more commonly used word. VPA & UPI ID are unique digital addresses that help identify your account to send or receive money.