It depends upon the form of regulation. As noted in the article...

It depends upon the form of regulation. As noted in the article there are 3 examples for Treasury to consider: the lightest would have minimal impact; the second seems to meet middle ground and would be acceptable to Zip, the most stringent (which is supported by ASIC, several banks and consumer groups) would probably lead to the demise of single product BNPL businesses such as Zip. They cannot make a profit already without adding a heavy and expensive administrative burden.

Hopefully the 2nd option will be preferred by Treasury, in which case you're right. The first option is unlikely and the third seems over the top but it is heavily supported.