The real-world use of virtual currency is catching on with Australian businesses, despite criticism the system is too unreliable.

The bitcoin online currency was launched in 2009 with the promise of cutting out bank fees, but since then it has been linked with drug websites and has attracted the ire of the Chinese government.

Despite that, a number of Australian businesses are now saying it gives them an edge in an increasingly competitive marketplace.

One company on board is Tomcar, an all-terrain vehicle manufacturer based in the Melbourne suburb of Oakleigh South that sells online to farmers, the military and emergency services.

"Using bitcoins to pay our suppliers overseas allows us to save a huge amount of exchange rate costs and banking fees," Mr Brim told the ABC's 7.30 program.

"We purchase parts from Israel in bitcoin and we only pay a 1 per cent fee.

"We've saved easily [$50,000] in fees, and that money can go into R and D (research and development), and customer service, so it's important.

"We've sold parts to customers in New Zealand who've paid us in bitcoin.

"We've sold merchandise to Canada and America, (but) we haven't sold a car yet in bitcoin."