The integration of technology into the banking sector has unleashed tremendous transformations in the manner we manage our finances. One such innovation through this interface is the Unified Payments Interface facilitated through the National Payments Corporation of India, that lies in its core VPA or Virtual Payment Address.This article elucidates how VPA functions in the UPI and what vpa means in upi.
What Does VPA Mean in UPI?
In the simplest term, vpa means in upi a unique identifier that allows you to transfer money across different banks using the UPI-based system. Every bank UPI app allows users to create a VPA, which usually looks like ‘xyz@bankname’, and it is as simple as creating an email address.
How VPA Works
The beauty of VPA in UPI is that it shields your bank details from the receiver. Instead of sharing your bank account number and IFSC code, you can use your VPA to transfer funds or to receive money. Essentially, using a VPA means you no longer require bank account details for financial transactions.
UPI and ATM Cards: A Shift in Banking
How do you use an ATM card in this scenario? Earlier, the conventional way to withdraw or deposit money required a visit to the ATM with your ATM card. However, with UPI, banking transactions can be done without needing an ATM card or a bank visit. Instead, all transactions are possible using your mobile device.
Transaction through UPI isn’t restricted to ATM cards only, since UPI facilitates a number of features, such as transferring money instantly between any two parties, bank or merchants, using mobile platforms. This also includes peer-to-peer collection requests that can be scheduled and paid as per requirement, making UPI a very convenient payment mechanism.
One of the key players to have recently stepped into this domain is Bajaj Pay UPI. Introduced by Bajaj Finserv, it enables users to make payments or transfer funds instantly, 24/7, using their smartphones. It also assures a high level of security and privacy, ensuring that the user’s bank account details are not shared during the transaction.
To use Bajaj Pay UPI, follow these simple steps:
1. Install the Bajaj Finserv Wallet app from your phone’s app store
2. Once installed, open the Bajaj Pay tab on the dashboard
3. Bind the app with your bank account by selecting your bank from the list
4. You will receive an SMS for verification. Post verification, set your M-PIN by entering the OTP received in SMS
5. After setting the M-PIN, create your own unique VPA
6. Once the VPA is created, you are ready to transact!
Conclusion
In conclusion, VPA’s role in the UPI has revolutionized money transactions by making them more accessible, convenient, and safer. Gone are the days of struggling with remembering or sharing complicated bank details for transactions or how do you use an ATM card. With a Unique Payment Address (VPA) and platforms such as Bajaj Pay UPI, ensure seamless, efficient, and secure financial transactions.
However, before you proceed to use UPI-based systems, make sure to secure your mobile device and bank applications. No doubt, the future of banking depends much on the effective use of technologies by banks. But we should not forget that these new technologies have come into existence to make our lives easier, and it is our responsibility to use them wisely and safely. So, follow the best security practices to keep your money safe.
