It’s been a long battle between Google and their Wallet app and NFC-equipped Verizon devices. It turns out that Verizon is now blaming Google itself as to the reason why it’s not working save for a few unlocked devices, citing specifically issues with devices ‘secure element.’ According to a letter from Verizon in response to XDA member Josh995′s complaint to the FCC, Verizon goes on to explain that Google Wallet is different than other m-commerce services such as Square, PayPal, or the Starbucks card.
The difference Verizon is referring to lies in the fact that Google Wallet accesses the device’s ‘secure element’ as mentioned earlier, and does not simply access the operating system. This ‘secure element,’ according to Verizon, is a proprietary and secure piece of hardware built into some devices and is separate from the device’s operating system. Verizon finally mentions that Google is free to offer the application in a manner that doesn’t require the app to access this secure element. I’m not sure as to the validity of this reason or excuse from Verizon since they did block the app at one time, even though they denied it. Regardless, Google, it’s your play.
source: XDA Forums