Definition of PAYMENT


Payment is primarily a noun in the English language, referring to the act or process of transferring money, goods, or services from one party to another in exchange for a product, service, debt, or obligation. It encompasses various methods and forms of compensation used in commercial, financial, and personal transactions.

Transaction and Compensation: As a noun, payment denotes the fulfillment of a financial obligation or the settlement of a debt through the transfer of funds, assets, or valuables. It involves the exchange of currency, checks, electronic transfers, or other forms of monetary value in return for goods purchased, services rendered, or debts repaid.

Methods and Forms: Payment encompasses a wide range of methods and forms, including cash, credit or debit cards, bank transfers, digital wallets, and cryptocurrencies, among others. It reflects the evolving nature of financial technology and consumer preferences, as well as regulatory frameworks governing payment systems and services.

Contractual and Legal Obligations: In contractual and legal contexts, payment signifies the performance of an obligation or the fulfillment of terms stipulated in agreements, contracts, or arrangements between parties. It ensures the exchange of consideration necessary for the validity and enforceability of contractual commitments.

Financial Management and Planning: Payment plays a crucial role in financial management and planning, influencing budgeting, cash flow, and liquidity management for individuals, businesses, and organizations. Timely and efficient payments are essential for maintaining financial stability, managing expenses, and meeting financial obligations.

Payment, as a noun, encompasses the transfer of money, goods, or services in exchange for value, representing a fundamental aspect of economic activity and financial transactions. Whether in commercial transactions, debt settlements, or contractual agreements, payment facilitates the exchange of value and the fulfillment of financial obligations in diverse contexts.

PAYMENT in a sentence

  • The customer made a partial payment towards their outstanding balance.
  • The contractor requested a down payment before beginning work on the project.
  • Electronic payments have become increasingly popular due to their convenience and security.
  • She received a lump sum payment as compensation for her services.
  • The payment for the goods was processed through an online banking system.
  • The company offers flexible payment options to accommodate varying customer needs.
  • He struggled to make ends meet after his hours were cut, leading to late payments on bills.
  • The tenant submitted their monthly payment for rent to the landlord.

Origin of PAYMENT

The term payment has its roots in the Old French word “paiement,” which comes from the Latin word “pacare.” Here’s the breakdown:

  • Paiement (Old French): Referring to the act of paying or settlement of a debt.
  • Pacare (Latin): Meaning “to pacify” or “to appease.”

Therefore, payment originally referred to the fulfillment of a financial obligation or the act of settling a debt to bring about peace or satisfaction.

In modern usage, payment denotes the transfer of money or other forms of value in exchange for goods, services, or the discharge of a debt. It encompasses various methods such as cash, checks, credit/debit cards, electronic transfers, or digital currencies.


  • Remittance
  • Compensation
  • Settlement
  • Reimbursement
  • Disbursement
  • Clearing
  • Satisfaction
  • Liquidation


  • Nonpayment
  • Default
  • Forfeiture
  • Loss
  • Debt
  • Arrears
  • Deficiency
  • Unpaid


  • Invoice
  • Transaction
  • Currency
  • Billing
  • Remuneration
  • Installment
  • Receipt
  • Bank transfer

🌐 🇬🇧 PAYMENT in other languages

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