In the last few years, UPI has become the most common mode of payment, reducing the use of cash or even card-driven payments. The benefits of performing transactions through UPI or Unified Payment Interface have made it the most widely preferred payment method. Let’s take a look at some of the reasons behind the ever-growing demand for UPI payments.
- UPI offers simplified, hassle-free online payments
- Transactions made through UPI are safe and secure in all respects
- UPI allows you to make payments towards your bills, shop on e-commerce websites, etc.
- UPI lets you make payments by scanning QR codes at your nearby departmental stores, chemist shops, etc.
- Regularly paying through UPI also helps you earn discount vouchers, cash back, and other rewards
What is VPA?
Just like you need a credit/debit card to make payment card payments, you need a VPA to make UPI payments. VPA stands for Virtual Payment Address which is basically the address to or through which you can make UPI money transfers.
A VPA is a unique financial address using which you can send and/or receive money in your bank account through UPI.
How to Create VPA?
Creating a VPA is nothing less than a piece of cake! When you create your UPI account on the Paytm app, your VPA automatically gets created. You simply need to enter your bank details once and you can forget them forever!
Paytm creates the unique virtual payment address for you in the simplest manner. Your Paytm VPA simply consists of your mobile number followed by the term – “@paytm”. For instance, if your mobile number is 98450*****, then your Paytm VPA would be 98450*****@paytm.
Every VPA has a standard format, which consists of your mobile number/name/email ID (which makes it unique) followed by the bank or third party app’s name.
Here are the steps to create your VPA on the Paytm mobile app:
- Download the Paytm UPI payment application on your mobile
- Enter your mobile number. If you have a dual SIM phone, you may be prompted to select the SIM slot in which your mobile number is present
- An SMS will be sent from your number to verify your mobile number
- Once this is done, you will have to select your bank name from the list that will be presented to you. Please make sure that the mobile number registered with your Bank is the same as the one you entered earlier. Your bank account details will now be fetched from the bank using your mobile number
- If you are linking your bank for the first time, you will be asked to set up a UPI PIN. You will need your debit card details for setting this up
- Your bank account is now linked via UPI and you are ready to make your first payment!
Benefits of VPA
There are multiple benefits of using VPA to transfer money from one bank account to another. Unlike other payment methods, you don’t need to share complex details like your bank account number, IFSC code, branch name, etc. to receive money in your bank account. You can simply share your VPA to receive money in your bank account.
Similarly, you don’t have to get in the middle of any hassle of adding beneficiary details on your mobile payment application or wait for the beneficiary to get added to your account to transfer money.
Moreover, VPA offers additional safety and security of your transactions since neither the sender, nor the receiver can find out your bank or any other confidential details. Only your VPA is shared which cannot be misused for any purpose.
How to Send Money Using VPA on Paytm?
Ever since its facilitation, UPI has become one of the easiest methods to transfer money from one bank account to the other.
We have explained the simple steps required to transfer funds through UPI using your VPA on the Paytm app:
- Log in to your Paytm UPI payment application and click on the ‘UPI/Send Money To Anyone’ option
- Select the receiver from your phone contact list or enter the mobile number of the receiver if it is not saved on your phone
- If the receiver does not use the app you use, you could ask them for their VPA on another app and enter that
- You could also click on the ‘Scan QR’ option and scan the recipient’s QR code
- Next, select the bank account from which you want to make the transfer and click on ‘Proceed’
- Enter UPI PIN associated with the selected bank account
- The amount will be immediately transferred from your bank account to the receiver’s bank account!
Wrapping it Up:
To create your VPA on Paytm, you simply need to create your UPI account on the Paytm app and go by the instructions that follow. Once your VPA gets created, you can simply link it to your bank account and begin transacting on the Paytm app!