Verizon is playing hardball objecting to Google wallet at the last minute before launch. Google wallet is the only functioning NFC payment system out there right now, it is working on the Nexus S right now. Isis, the payment system Verizon hopes to cash in on isn't close to being ready. Google had to give in and remove Google wallet from it's Google Galaxy Nexus, or the phone would not launch at all.
The press is reporting on Verizon blocking Google wallet for their own financial reasons. Now that Google has agreed to remove the app from the phone that has already shipped, that very well may be the software update that is waiting once you boot up the phone, one that removes Google wallet.
This is what Wired magazine is reporting on the issue:
Here is the Wall Street Journal
It is very clear why Verizon is demanding Google remove it's Google wallet from it's Nexus phone. They want to use their Isis payment system once it is fully developed to make money from payments made rather than let Google make that money using the Google wallet application that is already functioning on the Nexus S on Sprint. Google made it very clear from the beginning they would have Google wallet on this Nexus phone and only now is Verizon demanding it be removed. That is anti-competitive behavior. It is also Verizon dictating what is on a Nexus device which is not supposed to happen.
FYI even in the demo models they don't have Wallet preinstalled. So how are they going to remove something if it wasn't there in the first place? People SPECULATED it will be on the device... Google, Samsung, nor Verizon stated it would be on the phone in the first place. Another reason why I still don't believe this wallet thing is the issue... As it wasn't on the phone in the first place...