(Reuters) -Apple Inc is planning a new service that will allow small businesses to accept payments directly on their iPhones without any extra hardware such as Square’s payment terminals, Bloomberg News reported on Wednesday. Currently, retailers can accept payments on an iPhone by using payment terminals connected to their iOS devices through Bluetooth, a method used by Block Inc’s Square payment systems. Shares of Block fell 3.5% to $107.01 in early trading. The new feature turns the iPhone itself into a payment terminal and will let merchants accept payments with the tap of a credit card or…