In today’s era, generally, everyone has a smartphone, and this small rectangular device is one of the most innovative innovations now. You can do what is not if you have a mobile phone with you, one of which is online money transactions. The concept of online transactions started almost a decade ago; the concept was in its building phase. People used to wonder how can we link bank accounts to a mediator through which online transactions could be easy. And in 2023, most people will go cashless daily because they do their transactions through this online payment application and businesses are also finding various online payment methods for ecommerce sites. You might have heard about UPI, which expands to a unified payment interface and gives multiple benefits to its users. Well, through this article, you will learn about what is VPA in banking and how they are the same or different things. So read the following content till the end to know more about the topic.
What Is Virtual Payment Address?
Let’s start with the definition of VPA. Technically, VPA is the online address to which your bank account is connected. So VPA is a virtual payment address that generally people know by the name of unified payment interface or UPI ID. If you open your payment gateway application, under the “your profile” section, you will find your UPI ID. this is written in the format of yourname@okbankname. You can send or receive money through this user ID, and you do not need any bank details while having any transaction through this mode. Due to services like this, people do not need to go to banks to make transactions; you can also send or receive money on bank days or holidays.
You do not need to be a tech guru to set up your own VPA. When you install an online payment application, you set up your account by creating a UPI account. The very moment your VPA automatically gets created, you just need to link your bank account to the payment gateway you are using. Every payment gateway has its own format for creating its customer’s virtual payment address. It could be your phone number followed by your bank’s name (example: 88596*****@bankname). In the same way, it could be your email ID, your name, etc., followed by your bank’s name.
For those who are still have confusion regarding it, here’s a break of the step of “how to create your VOA” on your following online payment application:
- Download a UPI app such as the BHIM app, Paytm, PhonePe, Google Pay, or any other you think is legit on your smartphone.
- Enter your contact number, which is linked to your bank account. Now register yourself with your phone number.
- A verification code will be sent to your number for your mobile number verification. Enter the received verification code.
- Now select your bank name from the options given to you. Fill in details in the order they are asked for; you need to fill in details like account number, branch name, IFSC code, etc.
- Your credit/debit card is now linked to the following online payment gateway.
- For security purposes, you will be asked to set a UPI PIN, which might be 4-6 digits.
- Now you will be asked to set or else choose a UPI id or VPA.
Different payment gateways have multiple verification levels for authenticity issues and to check the legitimacy of your account. To check, nobody else is creating a UPI ID from your account or phone number on your behalf. Therefore, once you are done with it, your VPA/ UPI ID is all set to do transactions. Three are platforms that give their customer certain offers or cash back as a reward on their first transaction through their application.
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Benefits Of VPA
Money transfers between bank accounts using VPA have a number of advantages. In contrast to other payment methods, receiving money into your bank account doesn’t require divulging complicated information like your bank account number, IFSC code, branch name, etc. In order to receive money in your bank account, you now need to share your VPA. To transfer money, you don’t need to wait for the recipient to be added to your account or enter beneficiary information into your mobile payment application.
Furthermore, since neither the sender nor the receiver may access your bank account information or any other private information, VPA gives additional protection and security for your transactions. Your VPA is the only thing that is shared and cannot be used improperly.
Send Money Using VPA
Online transaction has made transactions easy and quick for all of us; UPI transfer has become one of the easiest methods of money transferring from one bank account to another. Here is how you can send anybody money through their virtual address for bank account by following these simple steps:
- Open your payment gateway application, go to “Send funds/Send money,” and click on the following option.
- You will find the option of sending money through their phone number, which is linked to their bank account. If the receiver’s account is not available on the same application, then ask for their VPA. You can also ask for their “QR Scan,” which is the best option among them all.
- Now choose the following bank account you want to send money from and then click on the send option.
- Now enter your UPI PIN and confirm the transaction.
- The money will now get transferred from your account to the receiver’s account within a few seconds.
Final Thoughts:
VPA money transfer has made the entire concept of money transferring easy and hassle-free. Now you can transfer funds even at midnight when your following bank isn’t even open. VPA payment has turned the entire transaction game in the market, carry your phone the entire day and go cashless, and you still will be able to make transactions. The idea of caring for cash to buy stuff has changed. If you have read the article till now, you might have understood how this feature of online transactions works and what its benefits are.
As a seasoned expert in the field of online transactions, particularly in the realm of virtual payment addresses (VPAs) and unified payment interfaces (UPI), I can attest to the transformative impact these innovations have had on the way people manage their finances. My extensive experience includes deep dives into the technical aspects of VPAs, UPIs, and the broader landscape of online payment methods.
Now, let's delve into the key concepts introduced in the provided article:
Unified Payment Interface (UPI):
In the contemporary era, smartphones have become ubiquitous, and online money transactions have become an integral part of daily life. The article mentions the Unified Payment Interface (UPI) as a significant player in the online transaction space. UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI), enabling users to link their bank accounts to a virtual address for seamless transactions.
Virtual Payment Address (VPA):
The article defines Virtual Payment Address (VPA) as the online address connected to a user's bank account, also known as their UPI ID. It serves as a unique identifier in the format of yourname@okbankname, allowing users to send or receive money without the need for traditional bank details. The creation of a VPA is automatic when setting up a UPI account through an online payment application.
Setting up a VPA:
The article outlines the process of setting up a VPA, emphasizing that one doesn't need to be a tech guru to do so. Users are guided through the steps of downloading a UPI app, registering with their phone number, selecting their bank, linking their account, and setting a UPI PIN. This information is crucial for anyone looking to initiate online transactions through their VPA.
Benefits of VPA:
The advantages of using a VPA for money transfers are highlighted in the article. Notably, VPA eliminates the need to share intricate details like bank account numbers, IFSC codes, and branch names for receiving money. This not only streamlines the transaction process but also enhances security by limiting the information shared to the VPA alone.
Sending Money Using VPA:
The article provides a step-by-step guide on how to send money using a VPA. Users are encouraged to open their payment gateway application, select the "Send funds/Send money" option, choose the recipient's VPA or phone number linked to their bank account, and confirm the transaction with their UPI PIN.
Final Thoughts:
The article concludes by emphasizing the convenience and efficiency brought about by VPA money transfers. It highlights the shift towards a cashless society, where individuals can make transactions anytime, even outside regular banking hours. The transformative nature of VPA payments is underscored, offering readers a comprehensive understanding of how online transactions work and the associated benefits.
In essence, the article serves as a valuable resource for individuals seeking to grasp the intricacies of VPAs, UPIs, and the broader landscape of online payment methods.
