Verizon-Google spat over Google Wallet highlights mobile commerce tensions

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Verizon Wireless' (NYSE:VZ) decision to ship the Android-powered Samsung Galaxy Nexus smartphone without preloading the Google (NASDAQ:GOOG) Wallet tap-and-pay application highlights the tension between wireless carriers and Google as they compete for their piece of the mobile commerce pie. Verizon said Tuesday that it was not installing Google Wallet on the device because "in order to work as architected by Google, Google Wallet needs to be integrated into a new, secure and proprietary hardware element in our phones. We are continuing our commercial discussions with Google on this issue." Verizon is partnering with AT&T (NYSE:T) and T-Mobile USA to mount Isis, an NFC-enabled m-commerce network slated to begin commercial trials in early-to-mid 2012. Isis is a rival to Google Wallet. According to a report in the Wall Street Journal, which cited unnamed sources, tensions rose so much between Verizon and Google over Google Wallet in the Galaxy Nexus that threats were made to launch the Galaxy Nexus on another carrier. Google Wallet so far has aligned with Sprint Nextel (NYSE:S), Citibank and MasterCard. Isis, meanwhile, believes its solution will have broader support from device makers, banks and credit card companies when it launches. Article (sub. req.)

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