Google Wallet on its latest smartphone Samsung Galaxy Nexus this month, the Wall Street Journal said.
The smartphone is the first to run Android 4.0 and it is due to be released soon by Verizon.
Google Wallet lets people use phones to make payments, redeem digital coupons and earn loyalty points with merchants.
A Google spokesman told the WSJ newspaper that "Verizon asked us not to include this functionality in the product," without elaborating on the reason behind the Verizon's move.
Verizon has formed a joint venture with rival AT&T Inc and T-Mobile USA that lets people make payments and redeem offers via their smartphones called Isis and is expected to begin trials next year, the Journal said.