Voice chat allows telephone calls between pairs of users and conference calling and uses a proprietary audio codec.

Skype's text chat client allows group chats, emoticons, storing chat history, and editing of previous messages.

Skype division headquarters are in Luxembourg, but most of the development team and 44% of all the division's employees are still situated in Tallinn and Tartu, Estonia.

Skype allows users to communicate over the Internet by voice using a microphone, by video using a webcam, and by instant messaging.

There are two user interfaces – organizations can switch their users from the default Skype for Business interface to the Lync interface.

Skype allows these registered users to communicate through both instant messaging and voice chat.

Shortly after its acquisition, Microsoft began integrating the Skype service with its own products.

Along with taking over development of existing Skype desktop and mobile apps, the company developed a dedicated client app for its newly released, touch-focused Windows 8 and Windows RT operating systems.

Skype supports conference calls, video chats, and screen sharing between 25 people at a time for free.

On 20 November 2014, Microsoft Office's team announced that a new chat powered by Skype is going to be implemented in their software, giving tools to be able to chat with co-workers in the same document.

Offline messages were implemented in a beta of version 5 but removed after a few weeks without notification.

The usual features familiar to instant messaging users—user profiles, online status indicators, and so on—are also included. Skype In, service allows Skype users to receive calls on their computers dialed by conventional phone subscribers to a local Skype phone number; local numbers are available for Australia, Belgium, Brazil, Chile, Colombia, Denmark, the Dominican Republic, Estonia, Finland, France, Germany, Hong Kong, Hungary, India, Ireland, Japan, Mexico, Nepal, New Zealand, Poland, Romania, South Africa, South Korea, Sweden, Switzerland, Turkey, the Netherlands, the United Kingdom, and the United States.

When the company introduced Office 2013 on 27 February 2013, it was announced that 60 Skype world minutes per month would be included in Office 365 consumer plans (Home and Personal, and University).