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

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

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.

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.

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.

On 15 September 2015, Skype announced the release of Mojis, "a brand new way to express yourself on Skype." Mojis are short clips/gifs featuring characters from films and TV shows to be entered into conversations with the same ease as emoticons.

In February 2016, Microsoft announced that it had started to introduce group calling on smartphones and tablets in North America and Western Europe.

Users may have more than one account; it is not possible to count users, only accounts.

Furthermore, Microsoft discontinued two of its own products in favor of Skype: In a month-long transition period from 8 to 30 April 2013, Microsoft phased out its long-standing Windows Live Messenger instant messaging service in favor of Skype, although Messenger continued in mainland China.

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