Lyft, Inc. (NASDAQ:LYFT) shares are trading higher on Thursday.

The company said it is partnering with Cash App to offer digital-first consumers greater flexibility when hailing a ride. Cash App is a payment service owned by Block, Inc. (NYSE:SQ).

Through its integrated partnership with Cash App Pay, Lyft is introducing a simple and user-friendly payment option for riders. This allows customers to link Cash App directly to the Lyft app, eliminating the need to take out a card or enter payment details.

This collaboration highlights Cash App Pay's convenience and accessibility, catering to the preferences of the next generation of customers, per the company's press release.

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"Today's partnership with Cash App gives riders even more options for getting out into the world — making it as easy and rewarding to pay for a Lyft ride," said Jordan Glassberg, VP of Partnerships and Loyalty at Lyft.

For digital-first consumers seeking alternatives to traditional credit cards, Cash App Pay offers the flexibility to pay using their Cash App balance or a linked debit card.

A recent study on customer satisfaction in banking and financial technologies found that Cash App is a preferred platform among Gen Z and Millennials.

According to Benzinga Pro, LYFT stock has gained over 25% in the past year. Investors can gain exposure to the stock via Advisor Managed Portfolios Trenchless Fund ETF (NYSE:RVER) and Amplify ETF Trust Amplify Travel Tech ETF (NYSE:AWAY).

Price Action: LYFT shares are trading higher by 1.16% to $13.55 at last check Thursday.

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