Square is cutting short its New York taxi trial. According to reports, Square pulled the plug as its attempts to overhaul its iPad-based card payment system to meet new rules. In a letter sent last week to the Taxi and Limousine Commission, Square indicated that it needed to overhaul its payment system to adhere to the commission’s policy on credit card payments in cabs

Under an agreement with the New York Taxi and Limousine Commission (TLC), Square has been running a small-scale trial, involving around 15 cabs, for the past few months. The system consists of an iPad fitted with a card reader in the taxi partition and an iPhone in the front, enabling customers to pay their fare with a swipe.

“Square has determined, in light of developments in prospective taxicab regulations in New York and other markets, and based on what we have learned conducting the Pilot Program to date, that we wish to pursue a different hardware and software solution,” the letter said.

The agreed 45 day notice period has been waived by the TLC while those taxi drivers taking part in the scheme will be reimbursed. Square will also pay for retrofitting cabs with technology from VeriFone or Creative Mobile Technologies, the two incumbents.