Starbucks is set to accept Square Wallet mobile payments from smartphone-wielding customers from early November at around 7,000 company-operated stores in the US.

The company will also enable digital tipping on its existing mobile payment applications and on Square Wallet for its US store partners (employees) in summer 2013.

Furthermore, Starbucks mobile application is now integrated with Apple’s Passbook allowing customers’ Starbucks Cards to appear on their iPhone screen automatically after they enter a favourite Starbucks store.

Square founder and CEO Jack Dorsey, commenting on the mobile payment partnership said, "This partnership gives millions of Starbucks customers a quick, seamless payment experience and introduces them to hundreds of thousands of small businesses in the Square directory."

In August 2012, both the firms said that Square will process Starbucks US credit and debit card transactions, which will expand Square’s scale and accelerate the benefits to businesses on the Square platform, especially small businesses, while reducing Starbucks payment processing costs.

Starbucks also plans to introduce Starbucks Reserve coffee line using its patented Clover Brewing system to approximately 200 additional locations in the US and Canada.

Global expansion into key international markets, including Japan and the UK, is also expected.

Starbucks also plans to add new exotic coffees to the Reserve assortment, including a rare Geisha coffee varietal from Costa Rica this holiday season.