The Collaborative International Dictionary of English v.0.48:
Payee \Pay*ee"\, n. The person to whom money is to be, or has been, paid; the person named in a bill or note, to whom, or to whose order, the amount is promised or directed to be paid. See Bill of exchange, under Bill. [1913 Webster]WordNet (r) 3.0 (2006):
payee n 1: a person to whom money is paid