Galaxy Nexus is a smartphone developed by Google and Samsung Electronics Co Ltd based on the giant Internet search company's Android software.
Google Wallet lets people use phones to make payments, redeem digital coupons and earn loyalty points with merchants. The app is key to Google's attempt to tap the local-business advertising market.
"Verizon asked us not to include this functionality in the product," a Google spokesman said, declining to give more details.
Verizon, the U.S. top carrier, has formed a joint venture called Isis with rival AT&T Inc and Deutsche Telekom AG's T-Mobile USA that lets people make payments and redeem offers via their smartphones. Isis is expected to begin trials next year, the Wall Street Journal said.
Verizon Wireless, a joint venture of Verizon Communications Inc and Vodafone Group Plc, did not immediately respond to requests for comments.
The Wall Street Journal first reported the story.
(Reporting by Rachana Khanzode in Bangalore and Jennifer Saba and Nicola Leske in New York; Editing by Mark Potter)
Posted by Jason Lomberg, Technical Editor