In recent years, UPI has replaced cash and even card-based payments as the most prevalent method of payment. The advantages of conducting transactions through UPI or Unified Payment Interface have made it the most popular method of payment. Let’s examine some reasons for the ever-increasing need for UPI payments.
- UPI simplifies and streamlines online payments.
- UPI transactions are completely safe and secure in every way.
- UPI allows you to pay your bills and shop on e-commerce websites, among other things.
- UPI allows you to make payments at nearby department stores, pharmacies, etc. by scanning QR codes.
- Regular UPI payments allow you to earn discount coupons, cash back, and other rewards.
What is a Virtual Payment Address?
The easiest way to understand what is VPA is to remember that a Virtual Payment Address is a unique identifier that enables UPI to keep track of an individual’s account. It serves as identification separate from your bank account number and other information. Virtual Payment Address can be used to make and request payments via an app that supports UPI. You do not need to repeatedly enter your bank account information when making multiple payments.
A typical Virtual Payment Address would resemble [email protected]
Typically, a primary default VPA will be established by the UPI application you are utilising.
The ‘abc’ portion of the preceding example could be anything, such as your name or registered mobile number.
The ‘bank name’ in the example could be the name of the bank where your account is held, the name of the bank with which the app is affiliated, or simply the word ‘UPI’.
You can check for the availability of the desired VPA and create one if it is not present.
How to create VPA?
Step 1: Once the UPI app has been downloaded and installed on your mobile device, launch it. The BHIM app is utilised here to demonstrate various features.
Step 2: Navigate to the home screen and select the “Profile” tab.
Step 3: If you have already configured a Virtual Payment Address, the primary VPA will be displayed for you to select. Go to the right, and click on the arrow in the upper-right corner.
Step 4: To create a VPA of your preference, navigate to the bottom of the screen and click on the plus sign.
Step 5: You will be presented with the opportunity to select the initial part of the Virtual Payment Address or VPA, which refers to the section that comes before the ‘@’ symbol in the VPA. There is also a list of suggestions that may be found here. You have the option of selecting one from the list, or you may enter the VPA of your choice and check its availability.
Step 6: Confirm the Virtual Private Network by clicking the “Submit” button. That brings us to the end!
How to send money using VPA?
It is not too difficult to send and receive monetary transactions using apps that are powered by UPI. It is far more efficient than other digital payment methods, requires very few details, and has fewer requirements overall. When you want to send money to someone else via VPA, you have to provide that person’s VPA ID as well as their UPI ID. Typically, this individual is referred to as the beneficiary.
Following the completion of the verification process, the funds will be immediately deposited into the account of the beneficiary. Also, to get money from a third party, you have to make a payment request and send it to the person sending you the money.
After that, the sender is responsible for confirming that the request is legitimate; only after that may they proceed with the payment. This is a safe and trustworthy procedure, and verification from both sides is the best way to guarantee its legitimacy and integrity.
Benefits of Virtual Payment Address
There are several benefits of using VPA of UPI for easy payments:
- Pay with any account associated with your mobile number that has adequate funds to cover the transaction.
- Using a single user name/virtual address makes it easy to keep track of all your transactions in a single location.
- Choose the ‘Pay with VPA’ option to transfer funds to any bank account. Simply input the recipient’s VPA, the amount to be paid, and any further comments.
- Receive funds when requesting with the VPA. It is as simple as entering the VPA, the sum, and any comments. When the other party accepts the request and authorises the transaction, the funds will be sent into your account immediately.
- Virtual Payment Address allows you to monitor the status of your past transactions.
- You can transfer money from anywhere and at any time, 24 hours a day, seven days a week.
- You skip the time-consuming process of adding a beneficiary or payee.
- Allows for 100% online and rapid transactions.
- Instead of transferring funds to an electronic -wallet, the UPI platform preserves funds in your bank account. You will continue to earn interest, whereas an e-wallet does not pay interest on funds placed.
- UPI is a platform that connects all of your bank accounts to one a generates VPA for all of your UPI-enabled bank accounts with a single bank UPI app. You may change your VPA at any time, assuming the new VPA username is available. The fact that no two VPAs are identical increases the security of your VPA
- Many banks charge users for using NEFT, RTGS, and IMPS; however, VPA transactions using the UPI platform are nearly free for customers. In addition, because UPI is built on the concept of the Immediate Payment System (IMPS), money can be transmitted instantly via UPI.
Growth of VPA/UPI ID since its introduction in the country?
Since 2016, UPI has been used in the industry, and its prevalence in the market has increased ever since then. It has been accepted by an increasing number of merchants and customers, and the National Payments Corporation of India reports that there are roughly 261 banks on UPI systems.
As a result of the popularity of UPI, the use of Virtual Payment Address has also expanded, and as of the year 2021, VPA has emerged as one of the digital identifiers with the highest adoption rate. The growth of VPA ID from January 2020 to September 2020 has been spectacular, with an increase from INR 2,162 billion to INR 3,290 billion; as a result, it has become an asset for the financial industry in the country!
There are numerous benefits of using a Virtual Payment Address. It is safe and hassle-free. So, to create your VPA, simply create your UPI account on any UPI app and follow the on-screen instructions. Thereafter, your VPA has been created, you can easily link it to your bank account and begin using the app!
1. How to find a Virtual Payment Address?
Ans: Click the ‘Profile’ option on your home screen after installing the UPI app on your mobile device. If a VPA has already been established, the default VPA will be displayed.
2. What is the maximum international transaction limit for UPI?
Ans: Currently, foreign transactions cannot utilise the UPI fund transfer function.
3. Can my existing UPI transaction limit be decreased?
Ans: A few banks offer the ability to reduce the UPI transaction limit in terms of both money and quantity. This can be accomplished by visiting their website for online banking.
4. Is it feasible to modify a Virtual Payment Address that already exists?
Ans: Yes, it’s feasible. You can modify or edit an existing VPA. This feature is accessible in the UPI app settings.
5. Can I connect an existing VPA to a new application?
Ans: Yes, you can link an existing VPA to a new app if that capability is supported by the app.
6. Is it feasible to connect multiple bank accounts to a VPA?
Ans: Yes, you can link all of your bank accounts to a single VPA.
7. Does Virtual Payment Address expire when not in use?
Ans: No, your VPA will not expire if you do not use it every day or often.
8. How many Virtual Payment Addresses are permitted to be created on a UPI platform?
Ans: You may create as many VPAs as you’d like on different UPI systems and link them to the same bank account.
9. What is VPA in UPI?
Ans: Virtual Payment Address (VPA) is an alternative term for a UPI ID; certain apps use this term.