This study investigated the impact of digital finance on the income of smallholder farmers in Iringa Municipality, exploring how digital financial services contribute to economic well-being and agricultural productivity. Employing a mixed-methods approach, data were collected from 100 respondents through surveys and interviews, focusing on key indicators such as the impact of digital finance on financial inclusion, agricultural productivity, market access and income levels. The findings revealed a significant positive relationship between digital finance adoption and improvements in farmers’ income, with notable increases in access to digital financial services, investment in agricultural inputs, and diversification of income sources. Furthermore, respondents highlighted the role of digital finance in enhancing market linkages and providing opportunities for e-commerce. However, challenges related to technological infrastructure and digital literacy were identified as barriers to further adoption. The study accentuated the importance of promoting digital financial literacy and improving infrastructure to maximize the benefits of digital finance for smallholder farmers in the region. Ultimately, this research contributes to understanding how digital finance can transform agricultural practices and improve the livelihoods of smallholder farmers.