What is a virtual payment address (VPA) and how does it work?

A Virtual Payment Address (VPA) is a unique identifier used in the Unified Payments Interface (UPI) system in India. It is essentially a usercreated identifier that replaces the need to share bank account details during UPI transactions.

When you register for UPI, you can create a VPA, which typically follows the format "yourname@bankname" (e.g., johnsmith@bankname). This VPA serves as your address for receiving UPI payments. Instead of providing your bank account number, IFSC code, or other details, you can simply share your VPA with others.

When someone wants to send you money through UPI, they enter your VPA in their UPI payment app or platform. The system verifies the VPA and links it to your bank account. Once verified, the payment can be initiated, and the money is transferred from the sender's bank account to your bank account.

The VPA acts as an easytoremember and secure identifier, allowing for quick and seamless transactions without the need for sharing sensitive bank account information.