Verizon Wireless blocks ‘Google Wallet’ mobile-payment system over security concerns

“Verizon Wireless, the largest U.S. wireless carrier, blocked Google Inc.’s competing mobile-payment system from the new Galaxy Nexus smartphone, citing security concerns,” Scott Moritz reports for Bloomberg.

“Verizon Wireless, co-owned by Verizon Communications Inc. and Vodafone Group Plc., is working to have ‘the best security and user experience,’ Jeffrey Nelson, a company spokesman, said today in an e-mailed statement,” Moritz reports. “The Basking Ridge, New Jersey- based carrier will allow the Google service, called Google Wallet, ‘when those goals are achieved'”

Mortiz reports, “Verizon Wireless and partners AT&T Inc. and T-Mobile USA plan to invest more than $100 million in a joint venture called Isis, which competes with the Google service, people with knowledge of the project said in August. ‘The refusal to allow this is probably being used as leverage in negotiations between Verizon and Google over the terms of the contract and the sharing of customer information,’ David True, a consultant with Broadly Curious Advisors in New York, said today in a telephone interview.”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Opportun” for the heads up.]

Related articles:
In 2012, Apple will blur the line between your iPhone and Mac using NFC and iCloud – November 22, 2011
Apple patent app describes future iOS devices communicating with parking meters, doors, cash registers and much more – September 22, 2011
Google launches Google Wallet service weeks ahead of iPhone 5 refresh – September 20, 2011
Google’s Schmidt: We’ll offer Google Wallet on iPhone if NFC is added to future models – June 23, 2011
eBay sues Google alleging theft of trade secrets over Google Wallet mobile payments – May 27, 2011
Apple seeks RFID, payment platforms experts, bolstering iPhone, iPad e-wallet rumors – January 26, 2011


  1. Google’s assumption that they can, drug-dealer-like, get everyone hooked on their free Android software and then get all their real money-making services (ads, payment systems, stores, etc.) on everyone’s devices is proving more and more to be a bad one. First Amazon de-Googlizes the Android platform for the Fire. Makes it Amazon’s own ecosystem. Now this: Google Wallet removed. What’s next?

    1. Amazon did nothing wrong and Google wasn’t screwed. Google chose to use an open source development model and Amazon is fully within the rights of the GPL to take android, chop it up and do with it as they please.

      1. True for Amazon, although it almost certainly wasn’t what Google had in mind when it decided to create and release Android. I would bet the Fire uses Google for web searches anyway.

        There is quite an assumption that Verizon is blocking Google Wallet simply as leverage until Isis is up and running. Google doesn’t exactly have a stellar track record of protecting privacy data, or of having services which are finished and secure. It could very well be that Verizon doesn’t want liability dumped on it if Google Wallet proves to be a leaky sieve of credit card and personal information. Or perhaps Google Wallet really isn’t ready for prime time, much as Google TV launched without content provider agreements in place.

    2. IIRC, Verizon was replacing Google search with Bing on some of the first Android phones they sold. Microsoft was paying Verizon big time for that. Needless to say Google was not amused, but there was nothing they could do. Ditto for some Chinese phones that replace Google services with Chinese competitors.

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