US wireless carrier Verizon has blocked its customers from using the Google Wallet service on the new Samsung Galaxy Nexus.
A Google spokesperson told The Wall Street Journal that Verizon has asked it not to include the Google Wallet app in the smartphone and has even blocked users from downloading the app.
This is a serious blow for Google's plans to revolutionise how people make purchases by enabling to do so from their Android smartphones.
"Verizon asked us not to include this functionality in the product," the spokesperson said in a statement, without delving into the reasons behind Verizon's request.
Verizon has teamed up with AT&T and T-Mobile and several big credit card companies to offer Isis, its own mobile payments service which will allow users to make payments with their near field communication (NFC) enabled smartphones.
If T-Mobile and AT&T also ask Google to ban the Google Wallet then Sprint will remain the only wireless carrier to offer Google Wallet, reducing the reach of the service.
Google has big plans for Google Wallet. Apart from allowing buyers to make payments using their smartphones, the company also plans to provide more data to retailers and advertisers on people's buying habits, which will be favourable for its local deals and mobile advertising business.