Payout Meaning: Definition, Examples, and Translations

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payout

[ˈpeɪaʊt ]

Definition

Context #1 | Noun

financial transaction

A payout refers to the distribution of money or assets, often in the form of payment, to a beneficiary or investor. This term is frequently used in contexts involving profit-sharing, insurance claims, or gambling winnings.

Synonyms

disbursement, distribution, payment, remittance.

Examples of usage

  • The insurance payout covered all the damages.
  • She received a hefty payout after winning the lottery.
  • The payout from the investment was higher than expected.

Translations

To see the translation, please select a language from the options available.

Origin of 'payout'

The term 'payout' originates from the combination of 'pay,' which comes from the Old French 'paier,' meaning 'to settle a debt,' and 'out,' meaning 'toward the outside' or 'away from.' The word began to be used in the financial context in the early 20th century, primarily in relation to dividends and winnings from gambling. Over the decades, 'payout' became a common term in financial discourse, especially relating to insurance, investments, and compensation claims. Its usage has expanded with the growth of industries involving financial transactions, making it an integral part of discussions around monetary exchanges.