What is UPI in BHIM, TeZ, Paytm and Phonepe?

What is UPI in BHIM, TeZ, Paytm and Phonepe?

The VPA or UPI ID (UPI Address) is the key to BHIM UPI fund transfer system. This virtual payment address has replaced the need for bank account details. Whether it is BHIM App, Tez, Paytm or Phonepe, all UPI based apps use the VPA or UPI ID.

The virtual payment address makes the BHIM UPI unique. On the basis of VPA, the BHIM UPI is most simple payment method. It is a mobile based fund transfer application. UPI has many benefits over the card payment, IMPS and digital wallets.

What is UPI Address?

If you want to pay money to anyone without using the cash, then you need the bank account number of the payee. Along with the bank account number, you also require the IFSC code. In other words, the bank account number and IFSC code is the address to pay the money.

But your bank account details can help the fraudsters. Using bank account details, the fraudsters try to cheat the gullible people. So it is always better if you can avoid exposing your bank account.

The VPA or UPI ID fulfills this requirement. This address is linked to your mobile number and account number.

UPI ID or VPA is a Virtual payment address which is used in place of bank account details for the fund transfer.

This address is unique to every user. It is very flexible and you can change it.

Since it is not your actual payment address but act as the payment address (bank account details), It is called as the virtual payment address or VPA.

The UPI ID resembles the email ID. For example, you can have a UPI ID as Indu@axis or shruti@PNB or 98400 12–0@upi.

UPI Address and BHIM UPI

Because of the UPI ID, the BHIM UPI easily hides the bank account details. The whole transaction of BHIM UPI takes place without the use of bank accounts.

Only the NPCI knows to which account a VPA or UPI ID is linked. The NPCI itself does the transaction. The banks only act as the creditor and deductor.

Benefits of UPI ID

  1. You do not give bank account number to receive money.
  2. It is easy to remember than the bank account number and IFSC.
  3. To be more secure, you can change the it whenever you suspect.
  4. You can get UPI ID of your choice.

How To get VPA or UPI Address

The VPA is a part of the BHIM UPI payment system. Therefore, you have to download the UPI App to get the virtual payment address. With the download, you have to link a bank account to the UPI app. 

The BHIM UPI app is linked to the bank account through the mobile number. Therefore, you should use the mobile number which is linked to the desired bank account. 

You must download the app on the same mobile which is linked to bank account.

After the mobile verification, you have to go through another round of verification. It can be a grid, security answer or any other authentication.

After the authentication, you can create a VPA or UPI ID for your given account.

Like an email address, you have to give your choice of VPA and check for the availability. If the given Address is available, proceed. Otherwise, try another address.

If your VPA is unique, you would get instant approval. You can use it immediately for getting money from another BHIM UPI app user.

Rules of UPI address

  1. You can have many virtual payment addresses
  2. You can change it whenever you wish
  3. No two UPI Address would be the same
  4. You can link many accounts with one VPA but you have to set an account as the default.
  5. You can’t choose the suffix of the VPA. It is fixed by the bank.

Different Names of VPA

There may be some confusion for the term VPA. As different apps use different term for this address

VPA or Virtual Payment Address

It is the basic name. This term is used since UPI payment system is being used. BHIM SBI Pay, PhonePe, Pockets and BHIM Axis Pay use this term.


The BHIM app started to use the term UPI ID instead of the VPA. Axis Pay also used this term.

UPI Address

The Google Pay (Tez) uses UPI Address instead of VPA or UPI ID.

VPA Suffix of the Different Banks

SBI Pay – @SBI

ICICI Bank UPI– @icici



Axis bank – @axis

Yes Bank – @YBL

Bank of Baroda – @barodapay

BHIM – @upi

Paytm Payment Bank – @paytm

Google Pay (Tez) – It has many Suffixes depends upon your bank.

Transfer Money Using VPA or UPI ID

The main use of the virtual payment address is the fund transfer. To give money to anyone using the UPI method, you must know the VPA of the beneficiary. These are the steps of money transfer.

  1. Open the UPI enabled app and enter the PIN
  2. Choose the option of fund transfer through the UPI
  3. Enter the beneficiary UPI ID, amount and remarks.
  4. If you have multiple accounts/virtual payment addresses, you can choose the VPA you would like to debit. Click on Submit
  5. Confirm all the details
  6. Enter MPIN to authenticate the fund transfer.

Get Money Using VPA or UPI address

UPI provides a way to ask money from someone. Let us see the steps.

  1. Login to UPI-based app.
  2. Click on UPI and then choose “Collect via UPI”
  3. enter the VPA or UPI ID of the person from whom you want money.
  4. Enter the amount and remarks
  5. If you have multiple accounts/virtual payment addresses, choose the address to which you want money.
  6. Submit the details and wait for the approval
  7. When the  person approves your asking amount, you would get it.

Not only the virtual payment address (VPA), the UPI is also working on Payment using the Aadhaar number.

Besides these payment methods there are other methods of digital payments which makes your life easy and convenient.

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