In addition to all of the cards/passes that already exist in Google Pay today, the new Google Wallet app will also introduce digital IDs and digital driver's licenses for the first time. Similar to how digital IDs work in Apple Wallet, digital IDs in Google Wallet will vary from state to state depending on local laws. It may be a while before the state you live in allows digital IDs in Google Wallet, but the foundation is now there to get the ball rolling.
Confused? We don't blame you. Google's branding around Google Pay has always been kind of a mess. This latest switch to Google Wallet is supposed to help clear things up, but how well that actually works remains to be seen. Google plans to start replacing the Google Pay name with Google Wallet this summer.