A payee is an individual or entity that receives payment for goods or services. In a financial transaction, the payee is the party to whom money is owed. This can include businesses, freelancers, or anyone providing a service or product. In a check transaction, the payee is specifically named on the check and is the one who can cash or deposit it. The payee's information is crucial for ensuring that payments are directed to the correct recipient, which helps maintain accurate financial records and facilitates smooth transactions.