What is VPA in UPI - Understand the VPA Meaning, Full Form, & Benefits

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By Pine Labs | August 01, 2022

VPA means Virtual Payment Address, which is the address to or through which UPI money transfers can be made. A VPA is a standard, digital bank account number that's understood by all banks and financial institutions across the globe. Moreover, having a VPA provides you with certain benefits, like more versatility in payment options, ease of use, and flexibility in international payments.

VPA is necessary for making UPI payments. Just like you have a physical bank account number, you have a VPA. It's not necessary that you link your physical bank account with the VPA number on a particular UPI app. This is because the VPA is virtually linked to your bank account, and it's directly connected to your bank account details. It is an account-specific code used by UPI applications to link with your bank account for instant fund transfers.

The VPA in UPI payment transactions is quite significant. UPI applications help you create a digital identity for your bank account, which is known as a "virtual payment address" or VPA. The bank account that is linked with the virtual payment address (VPA) acts like a UPI application's "source". The source account can be your regular savings bank account, current account, or current account-cum-savings bank account.

A VPA is an address that you can use to link multiple bank accounts, your card/wallet accounts, and your digital payment address with it. It is a unique address that you can use to make payments instantly. You can use it to send money via UPI apps or real-time modes of transactions. In fact, VPA numbers are used to create a digital bank account or a virtual bank account.

Benefits of VPA or Virtual Payment Address

1. Conceals your bank account number 

You can use your VPA to conceal your bank account number from others. In fact, VPA allows you to choose to not reveal your bank account number. This is mainly done because you do not want people to know or find out whether you have a savings or current account in your bank. This way, you can conceal the actual bank account number but still be able to make cashless payments and transfers through UPI apps via VPA.

2. Easy to remember

It is easier to remember the VPA compared to a long and complicated bank account number. It is widely believed that VPA numbers are secure and easy to remember. People will always find it easy to remember their VPA rather than the physical or real account number.

3. You can change it

You can even change your VPA to another account. In fact, you can easily do so and then use the new one. However, please note that once you have linked your bank account with a VPA, you cannot change it or remove it. Moreover, you cannot link a bank account to multiple VPA numbers as per the banks' regulations.

4. Available 24*7

You can now readily access your VPA number on a 24*7 basis. The primary benefit of VPA is that it provides you with instant access to your account details. Thus, you can get payment from the sources faster.

5. More security

With UPI, you can easily make transactions at any time and from anywhere. It's faster, safer, and more convenient. You can send or receive payments instantly using your VPA on a real-time basis. It is also more secure than other modes of fund transfers, e.g., RTGS or NEFT.

6. More user-friendly

By using your VPA, you can now easily make cashless payments to your friends, relatives, children, and employees. This way, you're not spending 3 days or even more to make an online payment. You can simply send money through the UPI app without giving out your bank account details.

7. Allows to track transactions

As you have a VPA number, you can easily track all your fund transfer transactions on the UPI app. Moreover, you can also get useful information such as the amount sent, time and date of transaction, recipient details, and other relevant information.
 

Comparing UPI with Other Modes of Online Payment

UPI Payment Vs Bank Account Transfer

The process of UPI is simple and easy when compared to NEFT. However, you will find that NEFT has higher transaction limits than UPI. Also, it is needed to make an advance payment of a minimum of INR 15 for enabling NEFT transfer on your account. However, for UPI, this is not the case. In fact, it is free! You can now make instant payments from anywhere as well as in any amount as long as you have a UPI-enabled app.

UPI Payment Vs Internet Banking

With UPI, you can now make cashless payments to your friends, colleagues, employees, and so on without having their bank account details. You can transfer funds instantly with a single click using their VPA. On the other hand, with Internet banking, you will be asked for account details to finalise funds transfers or cash withdrawals.

UPI Payment Vs ATM Transfer

UPI payment is easier compared to an ATM transfer. In fact, you have to remember only your VPA number. Also, you can make payments from anywhere, anytime, and of any amount. You can also send money instantly via UPI apps by using your VPA number. With ATM transfers, you have to remember the name of the bank, account number, IFSC code, and much more details for doing a cash withdrawal or deposit.

Frequently Asked Questions FAQs

What is the full form of VPA in banking?

VPA full form is Virtual Payment Address. It is a unique address created by your bank for you. The VPA is used as an account-specific code and acts as your digital identity for performing cashless banking transactions.

Is it safe to use Paytm UPI?

Yes, it is safe to use Paytm UPI. There is no risk of having your VPA number stolen or compromised. Moreover, the Paytm app is totally secure, such that you can make instant payments without even giving out your bank account details.

Can I share my UPI ID or UPI VPA?

You can share your UPI ID or UPI VPA when somebody wants to make a payment to you. In fact, it is widely used for making online transfers via UPI apps.

Can I use an existing UPI VPA on another payment app?

No, you can't. You can't use the same UPI VPA on multiple apps at a time. This is because each bank has its own UPI VPA.