Verizon Blocks Google Wallet on Galaxy Nexus Phones

It may be a little while before you can buy a grande latte by swiping your Google Wallet-equipped smartphone at the corner Starbucks.

Google says Verizon Wireless is blocking it from installing the Wallet app on a new line of Android-powered smartphones, the Galaxy Nexus, developed jointly by Google and Samsung.

"Verizon asked us not to include this functionality in the product," a Google spokesman said.

It's not quite clear if this is really the situation.  A ZDNet report says Sprint has exclusive rights to the Google Wallet app, at least for now.

The current Sprint Nexus -- the Nexus S 4G -- can use Google’s payment system and it's expected the same will be true of the Galaxy Nexus.

Adding to the intrigue, Verizon, AT&T and T-Mobile are working on a joint venture called Isis, which does the same basic thing as Google Wallet.  It's expected to begin trials next year.

If it turns out that Sprint, by far the weakest of the big three cell carriers, is the only one carrying Google Wallet, Wallet may join the long list of Google projects that sounded good in Mountain View but never quite got off the ground.

Retailers eager

Whatever the outcome, retailers are losing no time getting ready for Google Wallet and similar systems.

A San Francisco start-up, Cantaloupe Systems, is gearing up to launch Google Wallet in vending machines across Chicago, San Francisco, New York, D.C. and elsewhere.

Canteloupe promises greater efficiency to vending operators

The company reportgedly has installed the necessary technology into 6,000 of the 80,000 vending machines in its network. Once complete, customers will be able to pay for drinks and snacks with a simple tap of their phone, without digging for change or trying to cram dollar bills into the slot.

Vending machines have lost a lot of luster in recent years and sales are off 18 percent over the last two years.  Vending operators are hoping that Google Wallet will put some buzz back into vending by enabling them to offer coupons and rewards programs and even let customers submit reviews and complaints about machine malfunctions.