Definition of 'Payee'
The party in an exchange who receives payment. A payee is paid in cash, check or other transfer medium by a payer, with the payer receiving a good or service in return. The name of the payee is included in the bill of exchange.
Investopedia explains 'Payee'
In the case of a promissory note, with which one party promises to pay another party a predetermined sum, the party receiving the payment is known as the payee. The party making the payment is known as the payer.
In the case of coupon payments from bonds, the party receiving the coupons is the payee, whereas the bond issuer would be referred to as the payer.