Norwegian banks are banding together to fight off global competition in the payments space, according to a report from Reuters.

DNB, Eika and Sparbank 1 Gruppen will lead a group of banks that will combine their payment units to better improve their offerings in Norway while promoting products abroad.

Reuters reported the banks have a preliminary deal in place and ownership stakes are still being negotiated.

"We have two choices. Either let the existing payments infrastructure wither away, or join forces and push forward," DNB CEO Rune Bjerke said in a statement.

The banks want to have the companies up and running by Aug. 1, 2018, pending regulatory approval.