The boyhood Everton fan joined Liverpool as a teenager and made his debut in 1948 before going on to play in another 242 games for the Reds, scoring 43 goals.
Dubbed 'the Merseyside Matthews' in reference to legendary England and Blackpool winger Stanley Matthews, Payne was the only surviving member of the Liverpool side that reached the 1950 FA Cup final, the club's first Wembley appearance.
In 1956 Payne crossed Stanley Park to sign for Everton but only made a handful of appearances because of injury and later became a newsagent.
A statement on the Liverpool website read: "Everybody at Liverpool Football Club would like to pass on their condolences to Jimmy's family and friends."
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