VPDN is primarily used to create an efficient and cost effective long-distance and point-to-point connection between remote dial-up users and private networks. VPDN eliminates the need for using PSTN to create long-distance connections to a remote network. Rather than dialing directly to a distance location, VPDN works by connecting to an ISP point of presence (POP) infrastructure, which will then pass users and data over the Internet to the private or customer network.

VPDN uses Layer 2 tunneling technology, such as L2F and L2TP, to enable Layer 2 and parts of a network from a user to be connected to the ISP and the private network.