BelalM

he is locking in something because he is receiving a fixed rate in return. So that way he is getting the "FIXED" rate - while he pays the Floating rate. By swapping those flows - he is less uncertain about what amount he will get.

Fixed Rate Payer - pays fixed, receives floating.
He will agree to this if he is convinced that the Floating rates in future will GO UP.
In that way - (with netting in effect) - he will receive a sum of money.
Compare this to a Fixed Income Bond where you are the issuer (and you are paying a fixed coupon each period).

CP