Verizon Wireless, the No. 1 U.S. carrier, won't permit Google Wallet when it starts selling Samsung Electronics' Galaxy Nexus phone soon, reports said.

Verizon asked us not to include this functionality in the product, a Google representative told Reuters. Google Wallet is an application the Mountain View, Calif.-based company devised to make payments and perform other financial functions seamlessly.

Verizon Wireless previously said it would begin a rival service dubbed Isis next year with partners including AT&T and Deutsche Telekom's T-Mobile USA unit, the No. 2 and No. 4 carriers currently embroiled in a $39 billion merger that has been temporarily blocked by the U.S. Justice Department.

Verizon Wireless, which is controlled by New York-based Verizon Communications along with Britain's Vodafone Group, said in a statement sent to Bloomberg News that it barred Google Wallet for the best security and user experience.  It didn't provide more details. 

Earlier, Verizon Wireless had announced plan to start selling the Samsung Galaxy Nexus phone, an Android-based product that uses a near-field communications (NFC) chip which could interact with Google Wallet. The same chip can perform the same functions via Isis.

Shares of Verizon rose about 1 percent to $38.39, while Google shares fell about 0.6 percent to $621.84 in late morning. AT&T shares were at $29.16, up about 0.1 percent.