The research problem under investigation is how financial literacy and risk tolerance impact the purchasing behaviour of online customers in cities. With the ongoing growth of digital marketplaces, the knowledge of financial and psychological factors of consumer choices is crucial in making responsible consumption and online retail business more effective. There was the expectation of a quantitative cross-sectional research design whereby a structured questionnaire was utilised on urban consumers who are active in online shopping. Validated constructs were used to measure financial literacy, risk tolerance, and consumer buying behaviour in the study. Analysis of the data was done by reliability check, correlation and regression analysis to establish the predictive impact of each variable. The findings showed that financial literacy and risk tolerance were significant determinants of online purchasing behaviour, with financial literacy as the more predictive one. Financially savvy consumers were found to have more conscious and informed buying behaviour, and those with greater risk-taking behaviour were found to have more exploratory and flexible buying behavior. Combined, these variables explained a significant percentage of online consumption behaviour. The results highlight why financial education programs that enhance sound decision-making among online consumers are necessary. Risk-based segmentation can also be used to help businesses tailor their digital marketing strategies and increase consumer trust. The current research is a contribution to consumer research because it incorporates financial knowledge and psychological risk orientation to expound the online buying behaviour to provide a complete picture that can be useful to both the researchers, marketers and policymakers.