PC maker Dell is to begin accepting payments via bitcoin for products purchased on its website, becoming the largest e-commerce merchant to accept the virtual currency.

The computer giant's founder and chief executive Michael Dell took to Twitter to announce the news, saying "Dell is now the world's largest e-commerce business to accept bitcoin."

Dell said it was piloting bitcoin so customers could “buy digital with digital”, adding that there would be a 10 per cent discount on certain products if purchased with the cryptocurrency.

Digital wallet

The company said it had partnered with Coinbase to handle the processing of its transactions on the bitcoin network.

Founded in June 2012, Coinbase is an international digital wallet that allows consumers and businesses to securely buy, use, and accept bitcoin currency. Online retailers including Expedia are already using Coinbase to accept bitcoin.

Bitcoin would initially just be available as a payment option for consumer and small business shoppers in the US, Dell said. If the pilot went well, the operation would then be expanded internationally .

The bitcoin payment options would start appearing on the site within 14 days, Dell said.

"We've fostered a close partnership with the Dell team and that's been instrumental in getting the Coinbase integration up and running in such a short timeframe," Coinbase co-founder Fred Ehrsam said.

“We look forward to continuing to support the team as they explore other ways to offer even more functionality when it comes to bitcoin payments.”