Microsoft Adds Bitcoin Payments for Some Digital Purchases

bitcoin

The new payment option is the result of integration with Georgia-based bitcoin processor BitPay which allows businesses to accept bitcoin for sales

In a surprise move, global computing giant Microsoft has updated its payment system to accept bitcoin as a payment option for a variety of digital content across its online platforms.

According to the company’s payments information page, Americans can make digital purchases like apps, games and videos from its Windows Phone, Windows and Xbox marketplaces by funding their Microsoft account with Bitcoins.

However, this doesn’t mean Microsoft accepts Bitcoins as direct payment, but rather US users can add a certain dollar value to their Microsoft accounts using Bitcoin in denominations ranging from $10 to a maximum of $100 and then use that credit to purchase software. According to a Microsoft support document, the balance will work with the “Windows, Windows Phone, Xbox Games, Xbox Music, or Xbox Video stores.”

Meanwhile, Microsoft has put down a step-by-step guide on how to go about it for those who’d like some more details about the actual process. In the section titled “Some things to keep in mind” it is stated that those people who add funds to their Microsoft accounts with Bitcoin aren’t entitled for refunds once a transaction using that money has taken place.

The new payment option is the result of integration with Georgia-based bitcoin processor BitPay which allows businesses to accept bitcoin for sales but convert the digital currency into local currency. BitPay was founded in 2011 by Antonio Gallippi and Stephen Pair, and has raised $32.5 million to date.

Currently, the functionality is only available for people who live in the U.S. Microsoft holds a market cap of more than $380bn and annual revenue in excess of $86.8bn in 2014, adding yet another major tech player to the bitcoin ecosystem.

This consolidation could be a shot in the arm for Bitcoin. The news of such a huge company adopting the currency sent the price soaring to $360, a sharp increase from $340. However, the price is still well below the currency’s peak of almost $1150 last December. Since then, the currency has suffered a long decline.

Microsoft isn’t the only Seattle-area firm to accept Bitcoin as a standard payment method. Earlier this year, Expedia started taking the cryptocurrency for hotel reservations. Amazon competitor Overstock.com has also been candid about its support of Bitcoin, saying that it hopes purchases made with the currency to contribute 4 cents a share to its annual earnings.

Avatar
Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Hyundai commits $7.4 billion in US investment by 2025

Hyundai commits $7.4 billion in US investment by 2025

South Korea’s Hyundai Motor Co., announced on Thursday it will soon start manufacturing electric vehicles in the United States. The automaker plans to produce EVs, upgrade produc
2 days ago
US inflation report of 4.2 percent raises concerns

US inflation report of 4.2 percent raises concerns

The US reported the highest inflation recorded in the last dozen years at 4.2 percent in April, riding on government stimulus packages, improved energy prices, better spending and
2 days ago
Aon – Willis asset disposal aims to ease approval of $30 billion merger

Aon – Willis asset disposal aims to ease approval of $30 billion merger

Aon Plc and Willis Towers Watson have agreed to sell $3.6 billion worth of assets to rival Arthur J. Gallagher & Co. in a bid to appease European competition regulators over th
3 days ago
Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox declares Q1, reports $387 million revenue as bookings increase

Roblox, the hugely popular online gaming platform, reported its first-quarter earnings after becoming a listed company. Its revenue more than doubled as the videogame company benef
4 days ago
Weak US job report results in volatile market

Weak US job report results in volatile market

A weak job report resulted in a record close on Friday for the US stocks. The US labor department’s monthly non-farm payrolls report revealed employers hired 266,000 new workers
5 days ago
Star and Blackstone launch bids to buyout Australia’s Crown Resorts

Star and Blackstone launch bids to buyout Australia’s Crown Resorts

A bidding war has broken out between Australian casino company Star Entertainment Group and US private equity investor Blackstone Group over Crown Resorts, Australia’s bigges
5 days ago