A new research study from Blackhawk Network, a pioneer of prepaid gift cards, payments tools and rewards delivered via a robust and convenient network, has revealed that traditional payment methods such as cash and cards are still the most preferred with select digital offerings close behind.

The research, “How America Pays in 2016,” surveyed more than 1,000 Americans in March 2016 to examine how they pay today, their preferences for traditional and emerging payments tools and the role payments play in their purchasing decisions.

According to the key findings of the research, shoppers used the following payment methods over the last year:

• Cash: 87%
• Debit card: 75%
• Credit card: 69%
• PayPal: 67%
• Check: 60%
• Merchant-specific gift card: 43%
• Prepaid debit card: 38%
• Money transfer: 18%
• Mobile wallet: 17%
• Peer-to-peer payments: 5%
• Bitcoin: 3%

However, a closer analysis of the data suggests that while cash remains the most used payment methods, the roles of cash and checks have been declining. 87% of Americans used cash to pay in the last year, down from 93% the year before. Consumers are primarily using cash for purchases of $20 or less. Check usage is also declining as 60% of Americans used checks in the last year, versus 68% the year before. People are primarily using checks to pay bills (23 %) and pay other individuals (18%).

“This year, we are seeing consumer-driven innovation in payments; gift cards are being used for self use, peer-to-peer payments have a foothold, mobile wallets continue to rise in adoption and the gift card exchange industry has taken off. Not surprisingly, among this innovation, the role of some legacy payments tools, like checks, continues to decline”, said David Tate, senior vice president of products and marketing at Blackhawk Network.

Importantly, the research found that consumers are not only embracing alternative payment tools, but are also driving innovation in this field: 19% of consumers have now used a gift card exchange — a tool born directly out of consumer demand. 6% of smartphone owners now use P2P payments — a novel technology that provides a quick and inexpensive alternative to money transfers or checks.

Not much surprisingly, the survey found that millennials use newer payments methods at a higher rate as compared to the general population, including mobile wallets and peer-to-peer payments, and they use cash slightly less.

Lastly, of those surveyed, only 3% said that they have used bitcoins for making payment, suggesting that although the digital currency has become increasingly popular, it still has a long way to go.