Repaying Loans With Mobile Money: Impacts On Female Microfinance Clients In Tanzania

Mobile money services have expanded rapidly in Tanzania.However, women continue to use them less frequently, particularly for saving and business purposes. To examine whether digitizing loan repayments could increase adoption and promote women’s financial inclusion, this study partnered with BRAC Tanzania to conduct a randomized evaluation involving 152 female microfinance groups. Participants were randomly assigned to one of three repayment systems: traditional in-person cash payments, mobile money repayments with weekly meetings, or mobile money repayments with biweekly meetings. The study aimed to determine whether shifting loan repayment to digital platforms could foster habitual use of mobile money and influence women’s financial decision-making. Results show that mobile money repayment substantially increased women’s use of digital financial services for diverse transactions, enhancing their financial control, household empowerment, and spending autonomy. Moreover, mobile repayment strengthened social cohesion within microfinance groups, as participants reported more business discussions and closer relationships with peers.