Microsoft to accept Bitcoin payments

Microsoft customers of the software giant's US online store will now be able to pay for apps and services with virtual currency Bitcoin.

Bitcoin can be added as a payment option to a users' Microsoft Account, and used to buy content in the Windows Store as well as Xbox games, music and videos, and apps for Windows Phone.

Eric Lockard, Microsoft vice president of its Universal Store, said digital currency use was growing beyond 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," Lockard said in a statement.

Only specific Microsoft products and services can be paid for with Bitcoin at this time, the company said.

Microsoft has signed up payments processor Bitpay for the service, which is already providing Bitcoin transaction capabilities to online electronics retailers Newegg and TigerDirect.