There's a real opportunity for startups to solve real-world problems, not the "We are Dropbox meets Quora for AirBnB" type ones. Transferwise has a neat approach, which involves the currency never actually leaving the country, albeit at the cost of a couple of days of delay (essentially, they do peer to peer matching of needed cash flows); Remitly is slightly more traditional, but is still way cheaper than Xoom or Western Union. There's a lot of money to be made here while solving a major pain point.
You're very correct! Regarding online: Transferwise is interesting but a little cumbersome to based on business model. Remitly is cool, but for now only servicing the Philippines (very competitive). Xoom also does great stuff, and will continue to grow. Western Union and MoneyGram both have online offerings but have substantial room for improvement.
Look for additional players to enter. We're soon launching WireCash, essentially "Expedia for Money Transfer". We've partnered with many of the existing players to offer their services online in one central location for consumers. Want to empower consumers with choice, freedom, and options, as well as great/competitive service.
