<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS OF TOWNE SERVICES FROM FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31,
1999 (FOR SEC USE ONLY) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-END>                               MAR-31-1999
<CASH>                                       5,024,542
<SECURITIES>                                         0
<RECEIVABLES>                                5,508,511
<ALLOWANCES>                                  (337,565)
<INVENTORY>                                          0
<CURRENT-ASSETS>                            10,758,192
<PP&E>                                       3,678,227
<DEPRECIATION>                                (522,610)
<TOTAL-ASSETS>                              30,159,130
<CURRENT-LIABILITIES>                        2,888,122
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    52,418,798
<OTHER-SE>                                 (25,188,790)
<TOTAL-LIABILITY-AND-EQUITY>                30,159,130
<SALES>                                      4,604,460
<TOTAL-REVENUES>                             4,604,460
<CGS>                                          953,990
<TOTAL-COSTS>                                5,739,649
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             (78,067)
<INCOME-PRETAX>                             (1,057,122)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                         (1,057,122)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (1,057,122)
<EPS-PRIMARY>                                     (.05)
<EPS-DILUTED>                                     (.05)