There are some important caveats though, the new payment method is only available for US customers and you can only use it for digital purchases, not for physical products like phones or tablets. Additionally, you can only add US$100 worth of bitcoins to your account at a time and the payments can't be refunded.
Microsoft now joins other tech players like Dell, which has gone all-in on Bitcoin and accepts it for most products and services. PayPal has a deal with Coinbase to help online stores accept Bitcoins, though you still can't add them to your digital wallet. So far Amazon, the 800-pound gorilla of the e-commerce world, has strongly resisted the digital currency, however.Source Engadget