What does payment mean?
A payment is money paid to someone in return for goods, services, the settlement of a debt, or the fulfillment of another obligation. The word may refer either to the transfer itself or to the sum transferred, as in 'a monthly payment' and 'payment in full.' In everyday use, payment usually implies a financial transaction, but in legal and economic contexts it can include any transfer of value, including property, services, or securities. It is a neutral word commonly used in business, banking, commerce, and law. Related expressions include 'payment due,' 'payment method,' and 'payment plan,' which describe when money is expected, how it is transferred, and how an obligation may be divided over time. The term is useful wherever the focus is on the giving and settling of value, whether or not the transaction is specifically monetary.
nounA sum of money paid, or the act of paying money for goods, services, debt, or another obligation. The word can also refer more broadly to a form of compensation or a transfer of value.
- A sum of money paid, especially for goods, services, or the settlement of a debt.
- The act or process of paying someone or something.
- A form of compensation or consideration transferred to another person.
"The customer made a payment through the bank's online payment system."
"The final payment is due at the end of the month."
"Her years of service were recognized as a form of payment, even though much of the work had been unpaid."
Use 'payments' for multiple sums transferred or multiple acts of paying.
"The bank recorded two payments from the customer."
A payment is not only money changing hands: legally, it can be any form of value delivered in satisfaction of an obligation.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does payment come from?
The word entered Middle English through Anglo-French payement, a form related to payer, 'to pay.' Its deeper source is Latin pacare, 'to satisfy, agree, or pacify,' associated with pax, 'peace.' The sense developed from making peace or satisfying an obligation to paying money in settlement. Related English words such as pacify and pacific preserve the same broad historical root.
Related word forms
How payment is actually used
In general contexts, payment most often means a monetary transfer. In legal and economic language, it may also include other forms of value, such as goods, services, or securities. 'Payment' is commonly followed by 'for' when naming what the money pays for and by 'to' when identifying the recipient.