Android Studio - BillingClient not supported error

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I get this error in my log when running my app:

W/BillingClient: In-app billing API version 3 is not supported on this device.

I recently added in app purchase. Running in simulator.

Any ideas why that is? This is what I have implemented in build.gradle:

implementation 'com.android.billingclient:billing:2.2.1'
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