Block (SQ.US) partners with Lyft (LYFT.US) to provide convenient payment services for passengers.

Block (SQ.US) subsidiary Cash App will partner with ride-hailing company Lyft (LYFT.US) to allow consumers to pay with Cash App Pay while riding, marking the first collaboration between Cash App Pay and a carpooling company.

Passengers can now seamlessly connect Cash App to the Lyft app without having to pull out a card or enter payment information.

"As more consumers actively seek solutions outside of traditional financial systems, this partnership will provide consumers with a new, flexible, and convenient digital payment solution," said Tanuj Parikh, head of Cash App and Afterpay partnerships.

Cash App had 57 million monthly active transactions as of the second quarter of 2024. During the same period, Lyft reported more than 23.7 million active users.

Lyft's stock rose nearly 2% by Thursday's close, while Block's stock barely changed.