Afterpay says the federal government needs to clarify its new rules on buy now, pay later providers, warning the tests will create “significant regulatory uncertainty” and fail to grasp how millions of people use the short-term credit products.

Submissions to Treasury on the government’s attempt to regulate buy now, pay later as credit have reopened old wounds about the reach and obligations of national responsible lending laws. The government wants buy now, pay later providers to be subjected to more obligations, including a requirement they “seek to obtain information” about customers’ incomes and expenses.