NerdWallet acquires Fundera, and Square reportedly in talks to buy Credit Karma’s tax-prep business

Financial product marketplace NerdWallet acquired Fundera, a platform that allows small business owners to compare loan offerings. Meanwhile, the Wall Street Journal reported that payments firm Square, which offers a series of offerings for small business owners, is in talks to acquire Credit Karma’s tax preparation business.

Why should we care?
While Square and NerdWallet aren’t competitors, they’re both aiming to reach small businesses, an underserved demographic for financial services. Through Fundera, NerdWallet, which built a business off of its referral marketplace for consumer financial products, will be able to expand to the small business segment. Meanwhile, should Square acquire Credit Karma’s tax preparation business, it would be able to enhance its suite of small business services. For Intuit, which is in the process of acquiring Credit Karma, selling Credit Karma’s tax preparation business is a hedge against possible antitrust objections that may scuttle the deal. The bigger picture here is that competition for the small business customer -- be it loans, payments, or budgeting tools -- is heating up, with a growing number of players gunning for this segment.