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Digital credit is spreading rapidly across Sub-Saharan Africa and holds potential for financial inclusion and female financial autonomy. Women in developing economies have long been targeted by microfinance institutions due to the women’s reliability and positive spillover effects. Yet, adoption rates for digital financial innovations remain moderate among rural women in Sub-Saharan Africa. The authors explore whether female preferences for digital and conventional credit differ from males.

The authors conduct a Discrete Choice Experiment with 420 smallholder farmers in central Madagascar, one of the region's poorest countries, to assess preferences for selected digital and conventional credit attributes.

Results of the mixed logit model and the comparison of the willingness-to-pay via Poe-test suggest high general demand for both credit forms. The demand of female respondents is higher than that of males, suggesting that they might be underserved. This holds for both credit forms. However, differences in willingness to pay for the credit attributes are mostly not statistically significant, indicating that designing gender-specific services may not be advisable.

This article is believed to be the first to assess and compare gendered willingness to pay for digital and conventional credit. The study’s findings give valuable insights to decision-makers in development politics as well as the fintech industry.