Nordea is abandoning Swipp, the Danish mobile payments JV it runs with local banks, and hitching its wagon to rival Danske Bank's MobilePay service.
MobilePay has established itself as Denmark's leading m-payments service, with millions of people using it for P2P transfers and in-store and online purchases.
Danske Bank is now opening up the platform to all Nordic banks, with Nordea the first to sign on, offering the service to its customers in Denmark and Norway.
The move means that Nordea is abandoning Swipp - the MobilePay rival it owns with dozens of local banks - and will now pump money into Danske Bank's offering.
Two years ago Swipp bought Paii, another rival outfit formed by a group of Danish telcos, with the express intention of knocking MobilePay off its perch.
Today's news is a blow for Nordic payments processor Nets because it will be removed from the equation when Nordea customers use MobilePay, meaning it will no longer receive fees from Danske.
Nets, which floated last month, saw shares fall by more than six per cent today.
Nordea and Danske say that they have decided to join forces to give them a better chance of seeing off fierce and growing competition from international behemoths such as Google, Apple and Samsung.
Meanwhile, with other banks in Denmark, Norway and Finland expected to follow Nordea's lead, Danske says it will convert MobilePay into a subsidiary with its own board of directors.
A MobilePay route into Sweden could also be on the cards, with the firm saying it is eager to talk to Swish about allowing payments between the two services.