What is VPA: Virtual Payment Address Meaning and How to Create One

Updated on: 19 Nov 2025

Virtual Payment Address (VPA) in UPI or Unified Payments Interface is a unique identifier of your account. It is a system that bypasses the need for bank account numbers and bank IFSC. You can use VPA to send or receive money, make bill payments and initiate merchant payments.

To learn more about VPA in payment, how it works, its benefits and more, read on.

What is a Virtual Payment Address?

If you are new to UPI, you may wonder, ‘What is VPA in UPI payments?’ Here’s what you need to know.

It is a unique ID attached to a user, which helps track a person’s UPI account. You need your virtual UPI ID along with the beneficiary details to whom you want to send money to execute an online transfer. Using VPA in payment, you don’t need to enter bank account details every time you transact.

A VPA typically looks like xyz@bankname, where the first part can be anything from your name’s initials or a registered mobile number. Here, the ‘bank name’ can be:

Name of the bank with whom you have an account
Bank with which the UPI app is associated
Just the word ‘UPI’
Handle used by the UPI app

How to Create VPA for UPI Payment

Now that you have understood the meaning of Virtual Payment Address, it is also necessary to understand how you can create this unique ID:

Step 1: Download and open third-party UPI app on your mobile device
Step 2: Enter the mobile number registered with your bank account
Step 3: Entering OTP received on your registered contact number for verification
Step 4: Tap on the ‘Add New UPI ID’ option
Step 5: Enter and choose a unique username before the ‘@’ symbol
Step 6: Click on ‘Submit’

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How VPA for UPI Payments Works

Once you have set the unique ID, you can use VPA in payments through a third-party application. This way, you can send money to merchants, contacts, or any other person with a UPI ID. Here are the steps you need to follow to send money using a VPA.

Step 1: Open the UPI application and tap on the ‘Pay Using UPI’ option
Step 2: Enter the receiver’s VPA and confirm if it is linked to the person to whom you wish to send the money
Step 3: Choose the VPA for making the payment if you have multiple UPI IDs
Step 4: Enter your MPIN and confirm the payment to send money to a receiver

Here is how you can use your VPA ID to receive money:

Step 1: Open the UPI application on your mobile device and choose the ‘Receive Via UPI’ option
Step 2: Enter the VPA of the person from whom you wish to receive funds
Step 3: Add the amount you wish to request
Step 4: Choose a VPA when you want the sender to send money if you have multiple UPI IDs
Step 5: Confirm sending the request and wait for the sender to approve the transaction

Also Read: How To Create Upi Id and Do Upi Registration?

Benefits of VPA in UPI Payments

The use of virtual UPI ID has several advantages, which have helped this digital system to grow gradually in India. These include:

Cost-effective Option

As UPI payments don’t charge any transaction fees, it is a cost-effective way to pay a person or merchant digitally.

Secure Payment Method

VPA eliminates the need to share sensitive bank details like bank account number and IFSC. Since you can share VPA linked with your bank account, it makes online transactions much safer.

Fast Processing

UPI transactions initiated via VPA provide a real-time processing facility. This means you can send or receive money in real time. You also don’t need to wait for the bank’s approval or provide many details for making transactions, which saves time.

Convenient to Use

Using VPA is quite easy and simple, as you only need the receiver’s UPI ID or send your UPI ID to receive payments. Moreover, you can carry out these transactions using a mobile device, making it more accessible.

Also Read: Top online UPI payment apps

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