Harry Styles, Zayn Malik, Niall Horan and Louis Tomlinson joined Payne's family and friends for the private church service in Amersham, Buckinghamshire, northwest of London.
Payne was found dead after he fell from his hotel balcony in Buenos Aires, triggering an outpouring of grief from fans around the world.
Liam Payne's death triggered an outpouring of grief from One Direction fans around the world. (AP PHOTO)
The singer's coffin arrived at the church in a white carriage drawn by two white horses and adorned with floral tributes spelling the words "Son" and "Daddy".
Payne and his former bandmates were catapulted to global fame in the 2010s after Simon Cowell brought them together on the X Factor talent show in the United Kingdom.
The group went on to become one of the best selling boy bands of all time.
Cowell was photographed arriving at the funeral.
With their tousled hair and youthful charm, the band members became teen idols through hit singles like What Makes You Beautiful, Live While We're Young, Best Song Ever and Story of My Life.
Payne's former partner, singer Cheryl, with whom he had a son now aged seven, was also expected to be at the service, according to media reports.
Argentine authorities have charged three people in connection with Payne's death after an autopsy revealed traces of alcohol, cocaine and a prescription antidepressant in his system when he died.
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