Skype, once a prominent player in the phone and messaging arena, has undergone a significant transformation. The Microsoft-owned platform has quietly ceased allowing users to top-up accounts with credit and purchase Skype phone numbers. This move has led to a shift towards a SaaS mode, with users now being pushed towards monthly subscriptions for regional and global Skype-to-phone plans.

Microsoft's Skype: From Account Top-Up to Subscription

Trailblazing Beginnings

Skype emerged as a trailblazer in internet calling and messaging services. Founded in 2003 in Europe, specifically Luxembourg, it was one of the first large-scale, disruptive consumer VoIP services. It enabled users to make free internet-based voice calls bypassing traditional telephone lines and associated costs. Later, it added features like instant messaging, video, and file-sharing, which became standard in all messaging apps.Over the years, Skype has had various owners. It was acquired by eBay in 2005 with big ambitions, but those plans didn't pan out. Four years later, eBay sold it to a private consortium. In 2010, Skype filed for an IPO, revealing a massive user base. Microsoft bought it in 2011 and it has remained under its ownership ever since.The service was always free for Skype-to-Skype communication and made money by charging for calls to mobile and landlines. It also had a paid service for buying local phone numbers.

The Decline and Recent Surge

While Skype has been on a decline for some time, it saw a significant spike in usage during the lockdown in 2020. Microsoft revealed that Skype had 40 million daily users in March 2020, a 70 percent month-on-month increase. It was used by 100 million people each month. However, it's not clear how many active users Skype has today as Microsoft hasn't provided an update.Despite this, Skype still advertises Skype Credit and numbers in various places, but the sales have been permanently halted. When logged in through the web, it still invites users to purchase credit but stops short of allowing the transaction."The sales of new Skype numbers and Skype credit have been permanently halted," the spokesperson said. "For some customers, the interface for purchasing new Skype credit may still be visible in certain entry points, although payment attempts will not go through. We are aware of this issue and working on making the necessary updates."In short, the changes last week are likely to impact millions of people who used Skype for its phone functionality. Modern messaging apps like WhatsApp don't have this feature, while Zoom offers a similar product targeted at the business market.