The funeral took place in St Mary's Church, and only the family and closest friends attended the service.
Among them were his girlfriend Kate Cassidy, One Direction members Harry Styles, Niall Horan, Louis Tomlinson, and Zayn Malik. His former partner Cheryl Tweedy, with whom he has a son, was also among the mourners.
One Direction's former record label chief Simon Cowell was seen comforting the family, reports BBC.
Payne's coffin arrived at the church with a horse-drawn carriage, where flower decorations formed the words "son" and "dad" on the carriage.
In the artist's hometown of Wolverhampton, the memorial site has been filled with flower bouquets, greetings, teddy bears, and candles from fans.
Payne died in October after falling from a balcony on the third floor of a hotel in Buenos Aires. According to the autopsy report, the fall caused external and internal bleeding, as well as several other serious injuries, and a toxicology report also showed that he had drugs in his body when he died.
Liam Payne was a teenager when he broke through as part of the British pop group One Direction, and he has previously spoken about his struggles with addiction and mental health.
He was 31 years old.
