The announcement of Microsoft came as a result of the company's collaboration with BitPay, the largest global bitcoin payment service provider based in Atlanta, Georgia. The company now accepts bitcoins for purchasing games and other digital content on its Windows Phone, Windows, Xbox Games, Xbox Video and Xbox Music stores.
Microsoft and BitPay are yet to make a formal announcement on the details of the partnership. However, Microsoft gave out instructions on its 'billing help' pages for users who want to know how they can add money to their Microsoft account using bitcoin.
Microsoft reiterated that users can only add $100 at a time when using Biticoins. They are also advised to review their transaction before paying since the added money can no longer be refunded.
Initially, the bitcoin support is available to U.S. customers.
"Support for adding money to a Microsoft account with bitcoin is currently limited to the United States," said Microsoft.
Microsoft also reminds users that the added bitcoin money to their Microsoft account can only be used to purchase digital goods at certain Microsoft online stores. Purchasing Microsoft products and services directly using bitcoin is not available just yet.
Since it is still on an introductory phase, the bitcoin integration into Microsoft's ecosystem is only partial. Once the service proves to be a beneficial payment alternative, it would surely earn for itself a broader integration.
With the announcement, Microsoft becomes the latest tech player to have jumped into the bitcoin bandwagon. It joins the ranks of Dell, which now accepts bitcoin for most of its products and services, and PayPal which closed a deal with Coinbase in order to help online stores to start accepting bitcoins.
Microsoft's partnership with BitPay is part of the company's slow but sure scheme of embracing the bitcoin technology. In February, the company launched an update to its Bing search engine, allowing users to generate price conversions with bitcoin. During that same period, co-founder and currently the technology advisor Bill Gates said in the 'Ask Me Anything' of Reddit that he was keen on digital payments technology in general. Gates owns the nonprofit organization 'Bill & Melinda Gates Foundation.
In an appearance on the "Street Smart" segment of Bloomberg, Gates also voiced out his support for the idea of digital money. He said that while bitcoin seemed an exciting solution, it is also problematic due to ongoing financial pain points.
