Abstract: This study aimed to explore the impact of smartphones, as digital financial terminal devices, on rural credit demand. In response to the issues of uneven financial services and limited coverage of traditional credit in rural areas, this paper systematically examined the different pathways through which smartphone usage affects both productive and consumption credit demand among rural households. The analysis was based on data from the 2019 China Household Finance Survey (CHFS), employing Probit and Instrumental Variable Probit (IVProbit) models for econometric analysis, complemented by robustness checks using the Propensity Score Matching (PSM) method. The results indicated that, smartphone usage significantly increased credit demand among rural households, with a more pronounced effect on consumption credit. Furthermore, the heterogeneity analysis revealed that, smartphones had a greater impact on credit demand for households with lower income and educational levels, highlighting the role of smartphones in enhancing financial inclusion in rural areas. The findings of this study provided empirical support for the promotion and optimization of digital financial services and suggest policies such as increasing smartphone accessibility, optimizing rural digital financial products, and strengthening digital financial education.