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They can deposit cheques by photographing them and accept credit-card payments using their phones.
People who receive subsidised cooking gas will now get cash payments, using Aadhaar and their bank accounts.
Pingit, a service launched in Britain by Barclays, a bank, lets customers make payments using their mobile phones.
There are no plans to hike the maximum above £30 – though some other countries let people make bigger-value payments using contactless.
Transport for London (TfL) said contactless payments using a debit or credit card will mean easier and more convenient journeys for millions of customers.
He said the two men "had a sophisticated system" for making the alleged bribe payments, using foreign bank accounts in Switzerland, Monaco and Panama.
Last year, Visa, along with Telefonica (owner of O2) and Spanish bank La Caixa successfully trialled the use of contactless payments using the latest mobile handsets.
Payment startup Stripe is launching in Australia, letting merchants in the country join the UK, Ireland, USA and Canada in taking payments using the service.
Beyond the time, the smartwatch's screen will provide at-a-glance notifications and mobile payments using the company's Apple Pay contactless payment service.
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Opponents said the payments used public money to pay for Edison's marketing.
In the autumn statement George Osborne, the chancellor, introduced drastic cuts to Short money – payments used to sustain the functioning of opposition parties.
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