How does VPA work?

A Virtual Payment Address (VPA), or UPI ID, is a unique digital identifier used in the Unified Payments Interface (UPI) system. It acts as a secure address for your bank account, typically in the format username@bankname. VPA works by eliminating the need to share sensitive bank details like account numbers or IFSC codes for transactions. The UPI system validates the VPA and instantly routes funds between the payer's and recipient's linked bank accounts.