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Starbucks will take Square payments next month

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starbucks logo Credit: Getty Images

Smartphone-wielding Starbucks customers will get a new way to pay in early November when the world's biggest coffee chain begins accepting Square Wallet mobile payments.

Starbucks, which has embraced new technology ranging from social media to mobile payments, on Thursday said it also plans to add digital tipping next summer.

Details of the roll-out follow two months after the announcement of the partnership between Starbucks and Square, a hot start-up led by Twitter co-founder Jack Dorsey. The deal is expected to help boost the nascent mobile payments industry because Square will process all of Starbucks' credit and debit card payments.

Starting next month, Square users will show Starbucks cashiers a bar code on their phones. That code will be scanned for payment.

That process eventually will change to one where Square's GPS technology detects the customer's phone in the store. The customer then will "pay" by giving his or her name to the cashier, who will verify it with a name and photo displayed on the register's screen.

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