If you’re considering adding Zip or Afterpay to your financing mix, the process might become more involved after yesterday’s announcement that the government would regulate the buy now/pay later apps as a credit product. That means that before signing up new customers, the credit providers will have to run ‘responsible lending’ background checks to make sure the purchaser is in a position to make their repayments. It also means that automatic credit limit increases will be a thing of the past. The changes follow a 2020 report from corporate watchdog ASIC that found one in 5 users missed their repayments. According to Financial Services Minister Stephen Jones, the changes will account for the breadth of the industry that covers payments for pairs of jeans to major household purchases like solar power systems. Industry players were cautious yesterday, saying they would work with the government on the new laws to be in place by the end of the year.