She criticised the streaming model - Spotify pays out an average of $0.007 per song play - in a Wall Street Journal article this year.
"It's my opinion that music should not be free, and my prediction is that individual artists and their labels will someday decide what an album's price point is," Swift wrote.
"I hope they don't underestimate themselves or undervalue their art."
Spotify teased Swift, posting a playlist especially for her, and urged the singer to return.
"We love Taylor Swift, and our more than 40 million users love her even more - nearly 16 million of them have played her songs in the last 30 days, and she's on over 19 million playlists," the post read.
"We hope she'll change her mind and join us in building a new music economy that works for everyone. We believe fans should be able to listen to music wherever and whenever they want, and that artists have an absolute right to be paid for their work and protected from piracy. That's why we pay nearly 70 per cent of our revenue back to the music community."
Swift's withdrawal is likely to help her break Britney Spears' record 1.3m sales of her 2000 album, Oops! ... I Did It Again. 1989 is on course for the largest US sales week for any album since 2002, when Eminem sold 1.322 million copies of The Eminem Show.
Swift is one of the few artists to buck a global collapse in album sales since Britney Spears' heyday. The music industry is banking on streaming to replace full-price album sales, with Spotify having signed up more than 10 million paid subscribers and 40 million users.
But Swift's loyal fanbase was disappointed that they could no longer listen to her on Spotify.
One tweeted: "Why is Taylor Swift removing all of her music from Spotify? It's not exactly hurting her album sales obviously ... So greedy."
Others pointed out that her music could still be streamed on YouTube, which pays out less in royalties than Spotify, where unauthorised versions of an artists' music often competes with official videos.
- Independent