Galaxy Nexus Google Wallet Blocked by Verizon

There will be no Google Wallet on Verizon’s upcoming smartphone Galaxy Nexus as the largest U.S. wireless service provider has blocked the mobile-payment application because of the security concerns.

Developed by a partnership between Samsung Electronics and Google Inc., the Galaxy Nexus is the first smartphone to run the latest version of Google’s Android operating system - Ice Cream Sandwich. Previously, Verizon Wireless announced that they will carry the 4G LTE version of Galaxy Nexus. Eagerly waited by the Android fans it will go on sale this month.

However, Verizon Wireless said on Tuesday it was waiting for a mobile-payment app which can offer the best security and user experience. Right now, it is engaged in ongoing discussions with Google over installing the payment system.

Jeffrey Nelson, the spokesman of Verizon Wireless, explained that the carrier did not adopt Google Wallet because it “needs to be integrated into a new, secure and proprietary hardware element” of Verizon phone. Compared to that, the normal applications just need to access the operating system and basic hardware.

Nevertheless, Google’s Nexus S, the predecessor of the Galaxy Nexus, carried by Sprint Nextel Corp., has NFC chips for Google Wallet. And so far no reports about security problems among users and carrier have been found. Therefore, Greg Sterling, founder of the consulting firm Sterling Market Intelligence believes that Verizon is blocking a competitor from getting to the market.

Many news media reported that Verizon, AT&T and T-Mobile USA are working on their own payment system called Isis. This coincidentally competes with Google Wallet. The three largest carriers are planning to invest $100 million to the services that let consumers pay through mobile phones.

So far Nexus S is the only smartphone that runs the Google Wallet application which allows users to pay by tapping the phone to payment terminals in some stores. Its carrier, Sprint, is not a partner of the Isis venture.

Analyst has said that Google Wallet will confront an uphill battle without the support of the three largest carriers of USA, or at least Verizon.

Verizon’s LTE version Galaxy Nexus has been repeatedly delayed because of its discussions with Google about contract terms, the sharing of customer information and Verizon’s control over the phone’s features and apps.