Abstract: This study investigated the impact of mobile banking adoption on the financial performance of Micro and Small Enterprises (MSEs) in Arusha Town, Tanzania. The research focused on three key mobile banking services—mobile payments, mobile-saving services, and mobile credit—and examines their influence on financial performance metrics such as sales revenue, transaction volume, savings, and loan accessibility. Despite the potential of mobile banking to enhance financial inclusion, MSE adoption in Arusha remains limited due to infrastructural challenges, low trust in digital finance, and limited awareness. Using a descriptive research design and structured questionnaires, data were collected from MSE owners across various sectors in Arusha Town.