Spotify has announced a new deal with coffee chain Starbucks that will see it provide the in-store music for customers - as well as earn them rewards for using the service.

The new multi-year partnership will see Starbucks link its 7,000 stores in the US with Spotify, and all employees will be given access to a premium account that they can use to influence playlists heard in-store.

The playlists created will then be made available to Starbucks members through a new dedicated section of the coffee-shop app that will connect to Spotify.

Starbucks executive Kevin Johnson said: "We plan on building one of the most robust digital ecosystems of any retailer in the world.

“Given the evolution of the music industry and the proliferation of streaming technology, it was natural that we would partner with Spotify in offering our customers a new way to engage with their favourite music.

"Starbucks' ability to innovate with partners such as Spotify, creating new ways and platforms to engage with our customers, will afford us unprecedented interconnectivity across all of our capabilities, and provide new access points for Spotify as they continue to grow globally."

Users who sign up for Spotify Premium will have the opportunity to earn what the firms are calling "stars for currency", which will see Spotify become the first third-party company to gain access to Starbucks' reward system.

Neither party has confirmed the details of how this feature will work, but it is likely to involve rewards being given for listening to Starbucks-curated playlists.

The Scandinavian-founded music streaming service continues to face strong competition from the likes of Google Play Music and other streaming services such as Rdio and Jay-Z's TIDAL.

Apple is said to be preparing to launch its own streaming service later this year by re-working the Beats Music app the company acquired last year.