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Better still, Google wallet was killed for Google pay a number of years back. I remember being upset about it at the time. Now they're killing the killer to return the killed. I suspect it's about updating terms of service...
Android Pay was between Google Wallet and Google Pay. This is at least the fourth rebrand for Google’s payment services.
It's not rebranding the service. That's still called Pay. You merely process Pay payments with the Wallet app.
This is definitely a weird mix of nonsense and confusion, but that's where we are now.
Personally I wish it never became it's own app in the first place. Why didn't they just rename it instead of making a separate but functionally almost identical app.