Payee refers to an individual, institutional entity, or any organisation that is due to receive payment with respect to any goods and services provided by them. While the terms payee and payer are usually used in relation to the banking sector, they are also used in relation to investments.
Payee in reference of various businesses
A payee in the case of investments is a person or entity with a separate account from the client account. In banking, a payee is any person who is supposed to receive payment from any the payer.
A payee can be a single entity or multiple entities depending on the nature of the transactions. They can also endorse their payment by signing and stamping the back of the cheque.
In certain cases, the payee and the payer can be the same. It happens when you transfer amount from one of your accounts to another.