Here’s how to create a VPA on Paytm and begin your hassle-free payments experience

Unified payments interface (UPI) is meant to be secure and while most of that security lies in the National Payments Corporation of India’s (NPCI) cloud servers, it also protects consumers by removing the complicated account and CVV numbers from the equation when making digital payments.

It does so by using something called a virtual payment address (VPA), which is colloquially referred to as the UPI ID. Payments in UPI can be made using QR codes, mobile numbers, and more, but it’s the VPA that actually tells the payment systems where money should be credited from and where it should be debited to. The PayTM UPI feature allows you to create your VPA right from the app, and start making payments.

What is VPA in UPI payments?

As mentioned above, the VPA is often referred to as the UPI ID. It’s the unique ID that is linked to your bank account and tells the servers where money is supposed to go and where it is coming from.

Each bank account you have will have a different VPA attached to it, but the VPA doesn’t need to be created with the help of your bank. Instead, VPAs are created when you first enter the UPI ecosystem and it can be done using apps like Paytm too.

The VPA will usually look somewhat like an email ID, but without the email service provider’s name in it. For example, a person called Ajay could have a VPA like ajay@okicici, ajay1234@okaxis, and so on.

How to create a VPA?

While banks are allowed to create VPAs, apps like Paytm that support UPI payments can be gateways for creating the UPI ID/VPA. For instance, when you first register for UPI on the PayTM app, the app will create a VPA for you automatically, based on details that are fetched from the banking system through electronic means.

The PayTM Payments Bank is also allowed to create VPAs, so your VPA could be something like ajay@paytm. It may even be your mobile number, in which case the VPA will look like 98xxxxxxx0@paytm. When you do so, PayTM will link the VPA you choose to the bank account you want to associate it with, and you can then use this VPA in any UPI transaction, irrespective of whether it is done through the PayTM app.

The VPA is a “virtual” payment address because it is only a stand-in for your regular bank account number. A third party who knows your VPA can only send payments to it, and won’t be able to make payments from your account unless they know your UPI PIN as well.

Why is VPA more secure?

This is actually one of the reasons why the VPA makes your account more secure. The only way for a hacker to decipher your bank account number, and other associated details, from the VPA.

In addition, while you should remember your VPA, you may not even need it to make payments in most cases. The QR Code scanner on the PayTM app will allow you to make payments by scanning QR codes, without mentioning the VPA anywhere. In addition, another user using UPI on PayTM to make payments can receive money by simply using your mobile number as well.

What you should and shouldn’t do with your VPA?

Here are some of the most frequently asked questions about the VPA.

• Is it safe to share VPA with others?
  Yes, it’s absolutely safe to share the VPA with others to make payments.
• Do I have to change VPA regularly?
  No, the VPA for your UPI account is created once per bank account, and will remain the same forever.
• Can VPAs be the same for multiple bank accounts?
  No, the VPA will differ from one account to the next. However, you can have similar VPAs, like 98xxxxxxx0@paytm and 98xxxxxxx0-1@paytm. The difference between the two is little, but they signify different bank accounts that can be accessed through the same UPI gateway app.
• When can sharing VPA be dangerous?
  While VPAs can be shared, the UPI PIN should never be shared with anyone. If someone has both these details, they will be able to make transactions from your bank account without your permission.
• Can I use only VPA to make payments?
  Absolutely. On many online payments, you will see the option to use UPI showing up separately. Clicking on these will show you a text box where you have to enter the VPA. Entering the VPA here will automatically ping the PayTM app, and you can complete the payment from your phone.

Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in]