Apple Inc. has halted work on a project to build an iPhone hardware subscription service, according to people familiar with the matter, retreating from an attempt to change the way consumers buy its flagship device.

The idea was to make owning an iPhone like subscribing to an app — with consumers paying monthly fees and getting new phones each year — but Apple recently wound down the effort, according to people familiar with the matter. The team was disbanded and reassigned to other projects, said the people, who asked not to be identified because the work was confidential.

The move is part of a broader shift in how Apple approaches payment services. The subscription effort was overseen by the company’s Apple Pay group, which also shuttered a “buy now, pay later” program earlier this year. That service let shoppers pay off purchases over multiple installments, but Apple is now steering consumers toward third-party programs instead.

When the company canceled Apple Pay Later, a major factor in the decision was stricter rules by the Consumer Financial Protection Bureau. The agency said this year that pay-later-style services would have to follow the same regulations as credit card companies. That’s a headache Apple didn’t want to deal with, especially since the size of the business is relatively small. 

Given that the iPhone subscription service would use a similar structure and technology as Apple Pay Later, the company became concerned that it too would face scrutiny.  For more, read the full Bloomberg report.