<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF TOWNE SERVICES FOR THE YEAR ENDED DECEMBER 31, 1999 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>

                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               DEC-31-1999
<CASH>                                      20,981,000
<SECURITIES>                                 1,350,000
<RECEIVABLES>                                5,821,000
<ALLOWANCES>                                  (532,000)
<INVENTORY>                                          0
<CURRENT-ASSETS>                            28,729,000
<PP&E>                                      14,491,000
<DEPRECIATION>                              (3,371,000)
<TOTAL-ASSETS>                              57,737,000
<CURRENT-LIABILITIES>                        7,037,000
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  1,880,000
<COMMON>                                    87,460,000
<OTHER-SE>                                 (39,668,000)
<TOTAL-LIABILITY-AND-EQUITY>                57,737,000
<SALES>                                     29,774,000
<TOTAL-REVENUES>                            29,774,000
<CGS>                                        7,338,000
<TOTAL-COSTS>                               42,643,000
<OTHER-EXPENSES>                                 4,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                            (711,000)
<INCOME-PRETAX>                            (12,162,000)
<INCOME-TAX>                                   222,000
<INCOME-CONTINUING>                        (12,384,000)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                    3,183,000
<NET-INCOME>                               (15,567,000)
<EPS-BASIC>                                       (.64)
<EPS-DILUTED>                                     (.64)