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

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               SEP-30-1999
<CASH>                                      26,159,535
<SECURITIES>                                   850,000
<RECEIVABLES>                                7,212,924
<ALLOWANCES>                                  (593,549)
<INVENTORY>                                          0
<CURRENT-ASSETS>                            34,819,715
<PP&E>                                      12,660,460
<DEPRECIATION>                              (2,877,619)
<TOTAL-ASSETS>                              62,624,609
<CURRENT-LIABILITIES>                        5,687,048
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  1,880,000
<COMMON>                                    87,475,520
<OTHER-SE>                                 (33,507,400)
<TOTAL-LIABILITY-AND-EQUITY>                62,624,609
<SALES>                                     22,678,117
<TOTAL-REVENUES>                            22,678,117
<CGS>                                        5,210,813
<TOTAL-COSTS>                               32,903,752
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                            (435,179)
<INCOME-PRETAX>                             (9,794,167)
<INCOME-TAX>                                  (354,000)
<INCOME-CONTINUING>                         (9,440,167)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (9,440,167)
<EPS-BASIC>                                       (.40)
<EPS-DILUTED>                                     (.40)