<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS OF TOWNE SERVICES INC FROM FORM 10-Q FOR THE SIX MONTHS ENDED JUNE
30, 1999 (FOR SEC USE ONLY) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1999
<CASH>                                      32,333,082
<SECURITIES>                                         0
<RECEIVABLES>                                7,619,446
<ALLOWANCES>                                  (428,792)
<INVENTORY>                                          0
<CURRENT-ASSETS>                            40,778,000
<PP&E>                                       9,199,692
<DEPRECIATION>                              (2,092,008)
<TOTAL-ASSETS>                              63,531,131
<CURRENT-LIABILITIES>                        7,857,576
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  1,880,000
<COMMON>                                    82,042,453
<OTHER-SE>                                 (29,068,215)
<TOTAL-LIABILITY-AND-EQUITY>                63,531,131
<SALES>                                     15,427,428
<TOTAL-REVENUES>                            15,427,428
<CGS>                                        3,115,856
<TOTAL-COSTS>                               20,935,152
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                            (112,741)
<INCOME-PRETAX>                             (5,394,983)
<INCOME-TAX>                                  (354,000)
<INCOME-CONTINUING>                         (5,040,983)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (5,040,983)
<EPS-BASIC>                                       (.23)
<EPS-DILUTED>                                     (.23)