I have the same problem and it turns out because Google Wallet have "Offers", which always use Location Services (GPS, Wifi, etc.) to find the "relevant" offers (discounts, etc.) in your area.
I use Google Wallet for payment, but I do NOT need the "Offers" feature. In prior version of Google Wallet, I believe the "Offers" feature is disabled. However, now it is FORCED upon you. I don't see any settings in the Google Wallet app to disable "Offers". Anyone know?
Google Nexus 5 4G LTE
Stock ROM - rooted
Official Jelly Bean 4.4.2
Nexus 7 (2013)
Stock[/B] ROM - rooted
Official Jelly Bean 4.3
Galaxy Note 8.0
Google Nexus 7 Tablet - Official Google JellyBean 4.2
AT&T Galaxy Note with 4G LTE - Official AT&T Ice Cream Sandwich 4.0.4
AT&T Galaxy S4 Active with 4G LTE - Official AT&T Jelly Bean 4.2