Microsoft adds Bitcoin payments for Xbox games and mobile content

Global computing giant Microsoft has added bitcoin as a payment option for a variety of digital content across its online platforms, coindesk reports. According to the payments information page of Microsoft, US-based customers can now use bitcoin to add money to their accounts, which can then be used to purchase content like apps, games and videos from its Windows, Windows Phone and Xbox platforms.

The surprise announcement, which is the result of an integration with Georgia-based bitcoin processor BitPay, adds yet another major tech player to the bitcoin ecosystem – Microsoft boasts a market cap of more than $380bn and annual revenue in excess of $86.8bn in 2014. Currently, BitPay supports more than 50,000 businesses, including TigerDirect, Virgin Galactic and Newegg.

Eric Lockard, corporate vice president of Universal Store at Microsoft, later addressed the news in a full blog post that sought to convey to a general audience why it believes the move could be part of a long-term strategy that finds it embracing digital currency.
http://blogs.microsoft.com/firehose/2014/12/11/now-you-can-exchange-bitcoins-to-buy-apps-games-and-more-for-windows-windows-phone-

Lockard said: „The use of digital currencies such as bitcoin, while not yet mainstream, is growing beyond the early enthusiasts. We expect this growth to continue and allowing people to use bitcoin to purchase our products and services now allows us to be at the front edge of that trend.”
The integration is only partial, however. Microsoft said it will not accept the digital currency as a direct payment method, though a broader integration could take place in the future.

Microsoft explains: „You can only use bitcoin to add money to your Microsoft account and then purchase digital goods at select Microsoft online stores. You can’t use bitcoin to purchase Microsoft products and services directly at this time.”

The page also contains instructions for adding bitcoin to user accounts, including steps for desktop and mobile users. Microsoft outlines consumer considerations for using bitcoin as a payment method, noting the irreversibility of transactions. The page goes on to explain that customers who add money to their accounts using bitcoin will not be eligible for refunds after transactions are conducted.

Customers who believe they have sent an erroneous transaction are encouraged to reach out to the company. Customers can add up to $1,000 to their Microsoft in a single day, with a $5,000 maximum in place for each account registered by a given individual.

One reason Microsoft is going after this move is because it’ll help make international payment processing more convenient, said BitPay cofounder and executive chairman Tony Gallippi in a Forbes interview. “They’re a global company,” he said. “People are using their products and operating system in many parts of the world that don’t have credit card penetration. It’s difficult for many consumers to actually be able to put money in their Microsoft accounts.”

For this partnership, it didn’t require much work on Microsoft’s part to get this working, taking about two weeks to work out all the technical details, said Gallippi. Gallippi said the interest in Bitcoin at Microsoft came all the way from its CEO, Satya Nadella. “He’s a Bitcoin fan,” said Gallippi.

Microsoft is still testing the waters, said Gallippi, and it’ll be using this initial experiment to see what kind of usage it generates. If successful, Microsoft could roll it out possibly to Skype with its credit system for making calls or even physical Microsoft Stores one day.