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It is possible to upgrade firmware using USB link. We have code example called "USBFS Bootloader and Bootloadable" for PSoc 3, 4 and 5LP devices that depicts this functionality.
In order to view the project open PSoC Creator 4.2 > goto File > Code Example. In the find code example dialogue box search for "USBFS_Bootloader.cywrk".
You can also refer to the blog: Electronics Blog: PSoC5 Dual Application USB FS Bootloader
In the project, the bootloader component uses USB interface for managing command transfer from the PC to the device and status transfer from device to the PC. Since PSoC 3, 4 and 5LP can only act as USB device it is not possible to update the firmware using a Flash drive (since in this case it is required for the PSoC to act as USB Host).
PSoC 6 has USB Host functionality but at present we do not have code example to depict this functionality.